'India is growing due to entrepreneurial spirit'

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Reserve Bank of India Governor Duvvuri Subbarao.
Bangalore, May 14: The Indian Banks now can cut their lending rates further after the rate cuts by the central bank since last October, said Reserve Bank of India Governor Duvvuri Subbarao.

"Having said that in defence of the banks, I also want to say given the current economic context, and the given the policy initiatives taken by the RBI, there is considerable scope for banks to reduce their lending rates," Subbarao said at Confederation of Indian Industry (CII)

The Central bank cut repo rate at which it lends to banks by 425 basis points consistently since Oct and has directed the banks to carry the cuts further in order to boost the economy.

He further clarified that the notion that Indian economy could 'decouple' from the global economy was 'discredited now' since India like the rest of the worl was much more globalised.

He attributed the continuation of the 'India's growth story' to the 'entrepreneurial spirit, the increased productivity levels and the high level of savings'.

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