Pass-through of rate hikes to lift bank margins sharply - Economic Times

EBLR is linked to the RBI's repo rate. The other system used by banks to determine the rates, Marginal Cost of Funds Based Lending Rate (MCLR), is decided internally by the banks based on their cost of funds including the prevalent deposit rates.

Banks are expected to post steep net interest margins due to a near-total pass-through of Reserve Bank of India's policy rate hike under the External Benchmark Lending Rate (EBLR) regime. They have … [+2248 chars]

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