Big Banks works as a cartel

[Technoglitch]

However, none of India's big lenders, including State Bank of India and ICICI Bank, seemed to have got RBI's message as base rates (minimum lending rates) continued to be in double digits weeks after RBI's first repo cut.

The non-transmission of rate cuts forced RBI Governor Raghuram Rajan to pull up banks on Tuesday, following which SBI - India's biggest lender - announced a 15-basis-point reduction in base rate on the same day.

Hours after SBI slashed its lending rate, other big lenders - who had publicly defended their decision to not slash lending rates - announced reduction in base rates. HDFC Bank and ICICI Bank cut base rates by 15 basis points and 25 basis points on Tuesday, while Axis Bank cut its base rate by 20 basis points on Wednesday.

Fund Manager Accuses Indias Big Banks of Working Like a Cartel - NDTVProfit.com

 

[NinadG]

So this is the reason why banks were not lowering interest rates....

"Fund manager Sandip Sabharwal accused banks of working like a cartel to control interest rates in the country.
In a tweet, Mr Sabharwal, who has previously worked with SBI Mutual Fund and JM Financial said, "HDFC Bank cuts base rate, exactly the same as SBI. Banks are the biggest cartel in this country. Cement,Tyres etc only follow."

So what Modi is doing.....

 

[Technoglitch]

it is Mr.Raguram who needs to see these things.

 

[NinadG]

But he is an American import.....His priorities are different....& he openly challenges Govt...

 

[DashMajor]

And not to forget he's imported by UPA.

 

[Technoglitch]

But he is an American import.....His priorities are different....& he openly challenges Govt...

i differ on it, after all he just worked abroad and in 2005 he predicted the economic crises if the US had continued the same and it all happened..

 

[NinadG]

i differ on it, after all he just worked abroad and in 2005 he predicted the economic crises if the US had continued the same and it all happened..

But this cann't be the sole reason why he should be brought to India......Because I think the role of RBI governor is very much limited that too controlling monetary policy......Had he been appointed as finance minister, we would have been in a better position to judge him....

Still after appointing as RBI governor, he crossed line & challenged govt after Modi became PM....
Recently he compared Modi govt actions with Hitler. This clearly suggests that he is biased & not ready to follow rules that a RBI governor should follow.

 

[Technoglitch]

what did he challenge?

 

[NinadG]

He challenged Modi to remove him from RBI governor's post....as if he there are posts vacant for him abroad....

 

[Technoglitch]

Did Modi interfere in his business in the first place?