Will RBI Cut Rates Following Fed & How Will It Impact Vehicle Loans For Cholamandalam Finance?

Arul Selvan the President & CFO of Cholamandalam Investment and Finance believes that the RBI will likely lower interest rates following the lead of the FOMC in about a quarter. He anticipates that if there is a rate cut only 50% of the rate reduction will be passed on to consumers and there will be a delayed impact. A 25 basis point rate cut will result in a 10 basis point impact on NIM. Selvan also notes that higher interest rates can deter lending but he expects the NIMs for vehicle finance to improve in the upcoming quarters. He is optimistic about stronger demand particularly for tractors in Q3.
#fedratecut #usfed #fed
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