MCLR can come below 9 per cent : SBI Chief

With inflation cooling off a bit as indicated by WPI and CPI indices the rates are expected to stay sub dued. What will be interesting to know is whether the MCLR (Marginal Cost of Lending Rate) will get lowered than nine per cent.
 
According to SBI chief, Arundhati Bhattacharya, the MCLR may come down to below nine per cent soon. SBI chief made such comments on MCLR while talking to media houses on Monday.

SBI chief while expressing relief on the development in the Essar Steel case, commented on general levels in inflation coming down which will help reduce interest rates further. Lowering interest rate scenario is also a good sign for the industry as loan recoveries will improve with softening interest rates. The SBI chief mentioned that the rates may come down month on month thanks to cooling inflation level.  

While talking on transmission of rates, tbe SBI chief also said that SBI has already transmitted 95 basis points. Such transmission will be a big relief for stressed accounts and the banks may also see some traction on recovering the NPAs.