Privates and foreign banks are likely to cut interest rates in the coming days. Public sector banks have already decided to reduce interest rates following decrease in key interest rates by the Reserve Bank of India. Personal and commercial loans would be available at lower rates after cutting lending rates by public and private banks. It is to be noted that reserve bank is taking many steps to inject more liquidity in the market. Recently, it has cut cash reserve ratio, SLR and Repo rate leading to injection of more than Rs 2,60,000 crore into the system.

Finance Secretary, Mr Arun Ramanathan confirmed that the government is assured by heads of public and private banks that they would soon revise the interest rates. 

Joint managing director of the largest private bank, ICICI, Ms Chanda Kochhar said that banks are ready to cut interest rates but the quantum of cut would be decided after reviewing the overall economic situation. 

Meanwhile, Syndicate Bank and State Bank of Bikaner and Jaipur announced to cut lending rates by 75 basis points. The managing director of HDFC bank, Mr Aditya Puri expressed happiness over the decision of RBI to revise interest rate for improving liquidity condition in the monetary system.