Kochhar said the reduction in base rates always happens with a lag and added that her bank already uses the marginal cost of <g data-gr-id="26">funding</g> formula for deciding its rates.
She also welcomed other initiatives announced in the policy like increasing the FPI limits and other decisions in the run-up like having an empowered committee among joint <g data-gr-id="19">lenders</g> forum.
Kochhar pitched to ensure this does not make the JLF or joint lenders forums more bureaucratic in their functioning and decisions get taken fast.
HDFC Bank's Aditya Puri, who had the most aggressive rate offering before SBI's cut, said the positive side of the policy is that rates will come down more, and also welcomed other facets of the policy which make recovery easier and the clarity on liquidity.
"Rajan has frontloaded the rate cut and committed to <g data-gr-id="23">continue</g> with an accommodative monetary policy. This will certainly work as a booster dose for economic growth," founder and managing director of Bandhan Bank, C S Ghosh said.