Chidambaram to ask PSU bank chiefs to cut lending rates

Finance Minister P. Chidambaram today said that he has called a meeting of PSU bank chiefs and would persuade them to pass on the benefit of RBI rate cut to borrowers.

“I have called the chairpersons of public sector banks towards the end of this month and have a chat on these issues.

We will talk to the banks. I think they are cautious. Caution is good, but you can’t be overcautious,” he told reporters here.

Chidambaram said that although RBI has reduced the policy rates by 1.3 per cent since January 2012, banks have lowered the lending rates by only 0.3 per cent.

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