India Forums

Go Back   India Forums > India Business & Industry > Business to Business > Real Estate
FAQ Members List Calendar Search Today's Posts Mark Forums Read

Thread Tools Search this Thread Display Modes
Old 06-20-2014, 12:00 PM
Poonam Chauhan Poonam Chauhan is offline
Senior Member
Join Date: Dec 2013
Posts: 305
Default Auto, home loans may get cheaper as call rates fall

Overnight short-term rates have fallen sharply by about 70-90 basis points, or about 9-10%, in just three days after RBI infused Rs 10,000 crore through two-day term repo.

The chances of loans for homes and automobiles turning cheaper have brightened with the rates on overnight borrowing falling below the rate at which the Reserve Bank of India lends to banks, indicating comfortable liquidity. If this trend persists owing to fund flows from overseas, banks may be able to slash rates even without waiting for the central bank to cut its policy rate.

The last date for corporate advance tax payments was June 15, which in turn, led to fund outflows but the government is expected to spend the same money back into the system in 10-15 days. This will also support easy liquidity.

Between Monday and Thursday, the inter-bank overnight call money rate whipsawed to 6.90% from as high as 9% earlier in the week. The daily weighted average rate on Thursday closed at 8.06%, 72 basis points or about 8% lower than its Monday level.

In the call market, banks need not give any collateral in the form of government securities, which is seen as an advantage.

I Love this Forum
Reply With Quote
Old 06-24-2014, 10:44 AM
shilpa2014 shilpa2014 is offline
Join Date: Jun 2014
Posts: 52

It would be great, good post by the way
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

All times are GMT +5.5. The time now is 05:46 AM.

Powered by vBulletin Version 3.5.5
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.