Heartburn at lenders as loan rates fall but deposit rates don't

India’s state-owned banks have raised concerns with the Reserve Bank of India (RBI) about the weaker transmission of rate cuts to deposits, with lending rates falling significantly faster and straining their balance sheets, according to three people familiar with the discussions. In a meeting with RBI officials about 10 days ago, ahead of the monetary policy outcome on 5 December, multiple state-owned bank chiefs raised concerns that the dominance of external benchmark-linked loans has ensured instant repri ...