The banking institutions should give relief to borrowers and forward the complete benefit of the repo rates cuts carried out by the central bank (RBI) thus far.

In a gathering with some bank heads today, Dr. D. Subbarao, Governor, Reserve Bank of India, demanded banks to guarantee that customers are not put to any problem.

Mr. S.K. Goel, Chairman and Managing Director, UCO Bank, who attended the meeting, said that the conference did not talk about more cuts in key interest rates including CRR or SLR, but was called for a general economy appraisal.

Mr. K.V. Kamath, Managing Director and CEO, ICICI Bank, added that it was a response mechanism on the general financial system and the reaction of banking institutions.

However, the central bank did not show any worry on the development or the Government borrowing plan.

Mr. Subbarao also told bank heads to slash lending as well as depositary rates, and the majority of them present during the conference assured the Governor that there is scope to do so.

While talking to media persons after the meeting, Mr. Goel said while banks are ready to make reduction in depositary rates, it is not possible right now, but maybe after a month.

Mr. Goel also said that banks are expected to witness 22-26% credit growth during the existing fiscal, which is slightly lower than 2008.