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RBI warns banks against a loan price war

Economic Times 6 hrs ago·22 Sept 2026, 7:13 pm

In situations where banks are inundated with liquidity, the natural tendency among many lenders is to push loans and go down the credit matrix. The fear is that such aggressive lending to generate returns that cover the interest outgo on deposits and other costs may show up as sticky assets a few years down the line.

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