As the next bi-monthly monetary policy nears, the Reserve Bank of India (RBI) can accommodate one more rate cut so far this year, a veteran banker said. A room for 50-75 bps drop in interest rates exists from now to March 2020, Uday Kotak, MD & CEO of Kotak Mahindra Bank told CNBC-TV18. Even the bond market is pricing in a certain level of fall in policy rates, he added. While the RBI has cut rates by 75 bps since the start of 2019, banks have only eased their key lending rate by 15-20 bps. The RBI’s next monetary policy committee decision will be announced on August 7, 2019, even as the markets are pricing in another rate cut.
The RBI has cut policy rates by 75 bps and shifted to accommodative stance now, meaning thereby atleast a rate cut of 25 bps, RBI Governor Shaktikanta Das was quoted on Monday as saying in different media reports.
Meanwhile, Kotak Mahindra Bank Monday posted a rise of 23 per cent in its consolidated net profit at Rs 1,932 crore in Q1FY20 as against a net profit of Rs 1,574 crore during the same quarter of the previous fiscal ended March 2019.
The lender posted a 33 per cent rise in its net profit to Rs 1,360 crore during the June quarter of 2019-20, against Rs 1,025 crore in the year-ago same period, on a standalone basis, the bank said. Its total income on a consolidated basis increased to Rs 12,129.56 crore during the quarter, from Rs 9,903.56 crore in the corresponding period of 2018-19. On a standalone basis, the income rose to Rs 7,944.61 crore from Rs 6,644.29 crore during the period, the bank said in a regulatory filing.
Shares of Kotak Mahindra Bank closed the intraday trade at Rs 1,444.90, down 54 points, 3.60 per cent on NSE.