Ease interest rates to spur economy: FM to banks

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New Delhi, Jun 10: The Finance Minister, Pranab Mukherjee has urged the banks to cut interest rates and provide credit at a 'reasonable' rate in order to stimulate the country's economy and enable inclusive growth.

"As a financial intermediary the banks have to stand by to provide credit at reasonable rates," Mukherjee said addressing the chief executives of public sector banks on Wednesday, Jun 10.

He also said that the reduction in the key rates by the Reserve Bank is not 'adequately' getting reflected on to the reduction of BPLR (Benchmark Prime Lending Rates) of banks.

Saying that reviving the economy has been an area of concern both inside and outside the government, he urged the banks to take steps required 'to address these concerns expeditiously'.

"This will help restore the environment for rapid growth and ensure that the growth process benefits all our people," Mukherjee said in a meeting that was also attended by the heads of major banks and financial institutions including SBI Chairman OP Bhatt, PNB chief KC Chakrabarty and IIFCL Chairman SS Kohli.

OneIndia News

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