Click to play videoNew Delhi: Finance Secretary Arun Ramanathan on Wednesday met private bankers and asked them to cut interest rates.
After the meeting Ramanathan said that private banks promised to examine the possibility of rate cuts.
"They have assured that they would seriously examine reduction of interest rates," Ramanathan was quoted as saying by PTI after meeting the representatives of private and foreign banks in New Delhi.
The bankers, also indicated that liquidity has improved following various steps taken by the Reserve Bank of India (RBI) in the last one month.
"They did say, liquidity is better now and liquidity continues to be an item which has to be monitored on regular basis," the Finance Secretary said.
In addition, he added, the meeting took up issues concerning credit to the industry and financial intermediaries and specific problems relating to private and foreign banks.
Finance Secretary's meeting, among others, was attended by RBI Deputy Governor V Leeladhar, ICICI Bank Joint Managing Director Chanda Kochhar, J & K Bank chief Haseeb A Drabu, HDFC Bank Managing Director Aditya Puri and representatives of Axis Bank, HSBC, Citigroup and Duetsche Bank.
Meanwhile, more public sector banls banks have cut lending rates following a meeting with Finance Miniter P Chidambaram on Tuesday.
Bank of Baroda and Bank of India have both cut prime lending rates. Both the banks cut lending rates by 75 basis points, effective Monday.
Canara Bank also cut their auto and home loans by 25 basis points.
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