:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

BANKS WITH HIGH CASA RATIO TO BENEFIT FROM NEW LOAN PRICING

Even as Reserve Bank of India’s proposal for loan pricing aims at increasing transparency and will lead to banks becoming more rational in pricing loans, it will create discrepancies in pricing by different banks, given that base rate is likely to be a function of each bank's cost of funds and operating efficiencies. This would mean that banks with higher CASA ratios (and resultant lower cost of funds) and higher operating efficiencies are likely to benefit by this proposal.


The Reserve Bank of India has proposed a draft circular suggesting that all loans be priced off a base rate by April 1, '10 as against benchmark prime lending rate at present.


Source: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/Banks-with-high-CASA-ratio-to-benefit-from-new-loan-pricing/articleshow/5579259.cms

Posted by C.B.O.A., A.P.

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