Banking · Banking Macroeconomics
Which of the following represents the most significant external macroeconomic factor directly affecting the profitability and interest margins of commercial banks in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1High provisioning for employee pension liabilities
- 2Poor operational efficiency of rural cooperative branches
- 3Changes in the Monetary Policy rates (e.g., Repo Rate) by the Reserve Bank of India (RBI)✓
- 4High staff attrition rate in private banks
Correct answer
Changes in the Monetary Policy rates (e.g., Repo Rate) by the Reserve Bank of India (RBI)
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