Are we going to see a regime of lower corporate lending rates post Global Covid Crisis (GCC)?
In the past 15 months, Reserve Bank of India has reduced the Repo Rate by 210 basis points. Ideally it should translate into reduction of approximately 200 bps in the lending rate. However, the idea to implement MCLR over the earlier regime of Base Rate did not result in the reduction in the lending rate.
Why is it so?
Our team has analyzed the same and expect that with the curtain raiser of Bad Bank already laid down and expected 100 bps reduction of rates by RBI over the next one year, the corporate to get its missing pie of lending rates.