A day after SBI slashed its rate offering steeply, country’s fourth biggest private sector lender Kotak Mahindra Bank today announced a cut of up to 0.45 percent in its lending rates.

The bank has cut marginal cost of funds based lending rate (MCLR) by 0.20 to 0.45 percent across tenors, it said in a statement.

In an interview to CNBC-TV18 Dipak Gupta, Joint MD of Kotak Mahindra Bank said loan growth will remain cautious post MCLR cuts by many banks. However, cost of funds will remain same for deposits up to Rs 1 crore but the same has come down for deposits of Rs 1 crore and above, he said.

Gupta expects loan growth revival to happen primarily across retail consumer and corporate segment, however he remains cautious about it.

He said demonetisation has had a positive effect on gross non-performing loans (GNPL) as some small and medium-sized enterprises (SMEs) and a lot of technically defaulting customers actually came and repaid some of their loans.

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