Despite the continuing pressure on net interest margins, some of the large banks have cut their lending rates by 25 to 50 basis points to take advantage of the ongoing festive season and thus boost their retail loans base. The relentless flow of FDI and portfolio funds into India has created excess liquidity in the system, and the perceived inflationary pressures ahead have necessitated the RBI to go for another round of hiking CRR in its half-yearly review of the monetary policy. The CRR rate hike would prompt banks to have a relook at their lending rates. It?s certain that interest rates are not likely to soften at least in the short to medium term. This is something that the banks may not like but must learn to live with. But, it?s now time for consumers to make hay while the sun shines, as the happiness might be only short-lived.
?Srinivasan Umashankar, Nagpur
Oil buyers? cartel
India and China import more than half of their oil needs (?Fuel on fire?, Oct 29). Their combined market can affect global oil prices. In present circumstances, the two countries should come together to form a buyers? cartel and quote give-it-or-leave-it prices to oil exporters. If done this way, exporters will have to rethink their policy rationally, because they can?t afford to ignore these two countries with such huge oil import bills. While doing so, coal can come to the rescue of India and China. Yet, these two huge emerging energy consumers will have to curtail some of their luxuries.
?Naval Langa, Ahmedabad
