RBI rate cut: Policy transmission to take time

Post RBI's rate cut, bankers seem hesitant to follow suit. Bankers and NBFCs say they may not be in a position to reduce the lending rates in the residual period of March. Kotak Mahindra head of consumer banking MVS Manian believes that the monetary transmission at the current juncture looks very difficult. The key for industry is the slashing of lending rates by banks but this would happen only when banks are comfortable with deposits and deposit rates have to come down, he said.