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Mahindra and Mahindra Limited

Statement from Mr V S Parthasarathy, Group CFO, Group CIO & President Mahindra & Mahindra Ltd on RBI's Credit Policy

Apr 07, 2015   16:41 IST 
India

Statement from Mr VS Parthasarathy

“The RBI Governor did not deliver any rate cut, and this was widely expected but he has made a telling point about the need for banks to transmit the benefit of the previous reductions to borrowers. To this end, the RBI has indicated that  they will encourage banks to move towards a marginal cost- based determination of Base Rate regime. We hope this will be evolved quickly to benefit borrowers at large and improve demand for credit. Having said that, the Bank is known to act outside of policy windows and hence the hope is that further rate actions will not await dates but on data ( ie as soon as required)!

 

The RBI has also made clear its intention to allow corporates to issue INR bonds abroad under ECB; this would be a welcome move as both pricing and currency risks will be addressed effectively, apart from opening a window for INR denominated tradeable instruments in international financial markets.”


 
 
Mr. V.S. Parthasarathy
Mr. V.S. Parthasarathy
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