Life has come full circle for Indian bankers and for the affluent Indian consumers. “Bank
s have to look for survival in this highly competitive scenario”...“We are five months in the fiscal and demand for advances is more or less flat”... The above statements from bankers say it all. Truly, the once profligate banks are now facing the toughest time of the recent times as they begin to question their very own survival. Increased borrowing cost has taken a toll on Indian banks and consequently on Indian consumers. Interest rate hikes, one after the other, have made the life of the common man miserable, as banks were quick to offload the burden. The banks’ prime lending rates (PLRs) increased by 250-300 basis points during the last one year. The weighted average PLRs of public sector banks increased from 10.7% in March 2006 to 12.4% in March 2007 and 13.1% in July 2007, while those of private sector banks increased from 12.4% to 14.1% and 14.9% over the same period. The weighted average PLR of foreign banks rose from 12.7% in March 2007 to 13.9% in July 2007.
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s have to look for survival in this highly competitive scenario”...“We are five months in the fiscal and demand for advances is more or less flat”... The above statements from bankers say it all. Truly, the once profligate banks are now facing the toughest time of the recent times as they begin to question their very own survival. Increased borrowing cost has taken a toll on Indian banks and consequently on Indian consumers. Interest rate hikes, one after the other, have made the life of the common man miserable, as banks were quick to offload the burden. The banks’ prime lending rates (PLRs) increased by 250-300 basis points during the last one year. The weighted average PLRs of public sector banks increased from 10.7% in March 2006 to 12.4% in March 2007 and 13.1% in July 2007, while those of private sector banks increased from 12.4% to 14.1% and 14.9% over the same period. The weighted average PLR of foreign banks rose from 12.7% in March 2007 to 13.9% in July 2007.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
