Editorial #04

The state bank of India decision to  cut its marginal सीमांत  cost of funds lending rate (MCLR) by 90 basis points is a timely nudge हल्का धक्का  to borrowers उधारकर्ताओ , especially given the sharp slowdown धीमे  हो जाना  in credit growth in the current fiscal year . The timing of the cut is not surprising चोंका  देने वाला , given that the country's largest commercial lender ऋणदाता   is awash बहाया हुआ  with fund held in the current and saving account (CASA) deposits following the Center's decision  to withdraw high-value banknotes and impose थोपना  withdrawal curbs नियंत्रण  on accounts-holders. with demand across sectors having taken a knock दस्तक  in the wake of the resultant परिणामी  cash crunch कमी  , the SBI's decision to reduce borrowing coasts is likely to spur प्रेरणा  some credit-fueled buying including in sectors such as automobiles. latest data from the Reserve Bank Of India show that growth in bank credit decelerated to 1.2 per cent in the April-December 9, 2016 period , compare with the 6.2 per cent pace witnessed in the comparable period in 2015. Deposit growth , on the other hand, almost doubled in pace , accelerating तेजी से  from 7.1 per cent in the same period in 2015 to 13.6 per cent in 2016. Banks have thus found themselves in an unenviable अवांछनीय   situation where their liabilities देनदारियां  (the money the owe depositors) have jumped sharply , while their assets (the loans the give) have instead almost stagnated स्थिर . this has added to their woes at a time when mounting बढ़ते  bad loans have pushed most public sector banks to post record quarterly losses. the demonetization decision has willy-nilly बिना सोचे समझे  ended up providing banks with the windfall अप्रत्याशित  of the low-cost deposits that could potentially सम्भावित  serve as the launch pad to a credit-backed demand stimulus in the economy.

Other banks have also cut lending rates, and lenders are now vying बराबरी करना  with each other to inovatively परिवर्तनीय  structure  credit products, including home loans , in a bid बोली लगाना  to capitalize on what they will be an enduring टिकाऊ  revival पुनरुथान  in the appetite भूख  for borrowing . still , the constraint बाधा  of needing to fund the substantially काफी हद तक  higher interest commitments on deposits that have swelled बढ़कर  the bank's liabilities have also forced the SBI to raise the spreed it applies . it charge loans -- the additional markup interest it charge over the benchmark one-year MCLR -- to a minimum of 50 basis points from 25 basis points earlier. the question is whether this reduction in borrowing costs will be enough to restore consumer confidence . with the union budget less than a month away, the coming weeks could well serve to provide clear signals on the potential need for a fiscal stimulus प्रोत्साहन  to reinvigorate फिर ताजा करना  flagging economic growth, especially if a revival in credit growth is going to be slower than anticipated प्रत्याशित .

 VOCABULARY 

1. marginal                             सीमांत
2. nudge                                 हल्का धक्का
3. borrowers                           उधारकर्ताओ
4. slowdown                           धीमे  हो जाना
5. surprising                           चोंका  देने वाला
6. lender                                 ऋणदाता 
7. awash                                 बहाया हुआ
8. impose                               थोपना 
9. curbs                                  नियंत्रण
10. knock                                 दस्तक
11. resultant                             परिणामी
12. crunch                                कमी
13. spur                                    प्रेरणा
14. accelerating                        तेजी से  
15. unenviable                          अवांछनीय
16. liabilities                             देनदारियां
17. stagnated                             स्थिर
18. mounting                             बढ़ते
19. willy-nilly                           बिना सोचे समझे
20. windfall                              अप्रत्याशित
21. potentially                          सम्भावित
22. vying                                  बराबरी करना
23. inovatively                         परिवर्तनीय
24. bid                                      बोली लगाना
25. enduring                             टिकाऊ
26. revival                                पुनरुथान 
27. appetite                              भूख
28. constraint                           बाधा
29. substantially                       काफी हद तक
30. swelled                               बढ़कर
31. stimulus                              प्रोत्साहन
32. reinvigorate                        फिर ताजा करना
33. anticipated                            प्रत्याशित