Rate cut will be credit positive: Karnataka Bank CEO

Monetary Policy Committee of the Reserve Bank of India slashed the short-term lending rate, or repo rate, by 25 basis points to 6 per cent at its third bimonthly policy review.

Aug 02, 2017, 05.59 PM IST

BENGALURU: Karnataka Bank MD & CEO M.S.Mahabaleshwara on Wednesday said the Wednesday’s repo rate cut by 25 basis points (bps) was on the expected line.

“This is a data driven and scientifically analyzed decision,” he said, and added, “Even though policy appears to be neutral, in the long run it will prove to be Credit Positive.”

In his statement, he also added that the RBI’s decision to form a high level task force to examine formation of the Public Credit Registry is a welcome measure in further strengthening credit delivery system.

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