Lower cost of funds, operating costs vis-à-vis domestic banks seen as key reason

Even as the RBI is looking to finetune the Marginal Cost of Funds Based Lending Rate (MCLR) system to ensure better transmission, various sets of banks have lowered MCLR by different proportions over the past year or so. While PSU banks have cut MCLR the most since April 2016, when the new benchmark rate was first introduced, surprisingly foreign banks sport the lowest MCLR amongst all banks. MCL...