Union Finance Minister Pranab Mukherjee had said, two weeks ago, that he would talk to bankers regarding the much-needed drop in interest rates. Well, D-day for banks is here and eyeing the action with interest would be not only individuals, but also corporates of various hues and types.
On Wednesday, the slated meeting is to happen where the minister will meet the heads of public sector banks, where he will impress upon the custodians of Indian cash on the crucial need to lower the cost that they ask loan-takers to pay and even make the process of accessing money easier.
Not only will he ask them to lower interest rates, he will also seek to underline the fact that economic recovery may well hinge on improving credit flows to individuals and corporates in India, in effect, push his solution further for implementing a “benign plan of action that would pump-prime the economy and take it out of the global financial crisis induced slowdown.
If the intended effect is successfully assimilated by the gathering, individual loan seekers for education and housing as well as corporate institutions eyeing infrastructure spending will be benefited.
Exactly what the contours of the meeting will look like is still uncertain, but on the agenda will also be the question on the success or failure of the various stimuli plans unleashed by the government.