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The demonetisation booster

Flush with cash, banks have started cutting interest on loans. This could boost the profits of many corporates

Banks are flush with cash due to the government's demonetisation move. In order to boost lending, they have recently cut their MCLR (marginal-cost-of-funds-based lending rate). In simpler terms, they have reduced the interest rates that they charge on loans. Hence, borrowers are set to benefit. Among the borrowers, corporates are set to gain more from the rate cut than retail borrowers. This is beca


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