SBI, ICICI Bank, Punjab National Bank beat RBI Monetary Authority in raising borrowing cost
Higher borrowing costs risk slowing the recent recovery in demand for credit, which was led by retail and working capital loans, said Karthik Srinivasan, group head of financial sector ratings at ICRA Ltd., the local unit of Moody’s Investors Service. Moody’s cut India’s 2018 economic growth forecast last week, citing tighter financial conditions as a reason.
Indian lenders are raising interest rates even before any central bank action as the strongest loan demand in four years amid weak deposit growth pressures funding costs. Image source: Reuters