A pro-growth policy - Chandra Shekhar Gosh, Founder and MD, Bandhan Bank

View on RBI Policy - Chandra Shekhar Gosh, Founder and MD, Bandhan Bank views on today's RBI's rate cut.

"The Reserve Bank of India governor Dr Raghuram Rajan has surprised the market by announcing a 50 basis points cut in the repo rate to 6.75%. We could not have asked for more. He has frontloaded the rate cut and committed to continue with an accommodative monetary policy. This will certainly work as a booster dose for economic growth.

In his press conference, after unveiling the policy, the governor spoke about discussing with the government the small savings rates. If indeed the government decides to cut the small savings rates, the banks will be in a better position to cut deposit rates and that will lead to faster transmission of the monetary policy. In other words, the banks will be able to cut the loan rates faster.

With this, we have 125 basis points rate cut since January. Following this, we will see lower loan rate, higher credit growth and, of course, higher growth in gross domestic product".

Source : Equity Bulls

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