Falling growth, inflation and lower fiscal deficit are expected to prompt RBI to cut rates.
Set to be allowed to apply for bank licences in the final guidelines expected by the end of the month
The pick-up in credit demand in coming months looks uncertain.
The Reserve Bank of India is widely expected to reduce the repo rate for the first time in nine months when it announces its third quarter policy review.
Also on the cards could be the first interest rate reduction in nine months.
FinMin advice to include brokers & realty firms, debate over entry of industrial houses slow the process.
The New Year could bring some cheer among bankers, as the Reserve Bank of India (RBI) is expected to start the rate easing cycle as early as January, during the third quarter review of monetary policy.
Some see CRR cut as tight liquidity continues.
Thomas Mathew T, managing director, tells Manojit Saha and M Saraswathy about the LIC's strategy and growth plans.
Of the 15 participants, 7 expect CRR cut, only one sees repo rate reduction.
The street feels that RBI needs to intervene further, as liquidity is about to get strained.
Tagged as a sleepy, regional lender till a few years earlier, the bank's stock was not much talked about in the investors' community.
They need money as Rs 100,000 cr deposits will mature by December.
Chidambaram also asks these not to rush for bulk deposits to bloat balance sheets.
Despite sluggish credit growth, most banks are cautious about growing their unsecured loan portfolio.
Banks offering a higher rate on savings bank deposits have seen robust growth in the past year but the momentum might get slower as interest rates turn more benign.
SBI's home loan portfolio has recorded a 73.86 per cent growth against Rs 623.38 billion as on September 30, 2009
NPA percentage in loans may touch 10% by March 2013, up from 5% in March 2011.
Move significant as new banking licences under his purview.