Bankers have ruled out immediate cut in lending rate
By Neelima Shankar
Mar 25, 2013
Print    Email    RSS   

Borrowers will have to wait a bit longer for relief from elevated interest rates as bankers have ruled out any immediate cut in the lending rate.

Even after the Reserve Bank of India has delivered two successive rate cuts this year, banks have ruled out any immediate rate cut, citing high cost of funds.

"The basic thing that is required - the cost of deposits - is still in the higher side," state-run Union Bank of Indiachairman and managing director Mr. D Sarkar said, explaining bank's inability to cut rates now.

State Bank of India's Chairman, Mr. Pratip Chaudhuri also said that it is impossible for his bank to cut lending rates in near term.

Most of the state-run banks generally rely on the costly bulk deposits to increase their deposit bases unlike private sector banks, which mop up the low-cost savings and current account deposits, and banks have been steadily increasing their term deposit rates for the past few months.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

ICICI Bank’s recurring deposit scheme
An Overview of Wealth Management Services...
Carnival of Indian Personal Finance Blogs #4
Carnival of Indian Personal Finance Blogs #1
The recent interest rate hike

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive