NEWS & ADVICE : FIXED DEPOSITS
Union Bank says no rate hike in near term
By Neelima Shankar
Mar 21, 2011
Print    Email    RSS   

Public sector lender, Union Bank of India has ruled out chances of any further rate hike in both deposit as well as lending segment upto April.

Following the policy rate hike by Reserve Bank of India recently, it is expected that most banks will opt for interest rate hike.

"Immediate future in about a month time, I don't think interest rates are going up as far as Union Bank is concerned," bank's Chairman and Managing Director, Mr M V Nair said.

Speaking on the net interest margin (NIM), he said that by the end of this fiscal, the NIM of the bank would stand at 3.25%. In the upcoming fiscal, the NIM is expected to stand at 3.10%.

"As a matter of fact, our NIM was 2.7, it has gone up to 3.25 per cent but the next year our expectations have come down for the reason this year we had certain benefits because deposit cost did not go up substantially. Last 2-3 months we increase deposit rates that would have impact on the next year (NIM)," he said.

Apart from this, the bank has recently also entered into collaboration with Nokia, to carry ahead its plan of financial inclusion. The deal between the two entities will aid in providing mobile banking facilities in rural areas.


 


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

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Medical Insurance: Save tax along with health
J&K Bank raises PLR
FDs or Equity? Which suits you best?
How to Invest to Save?
Carnival of Indian Personal Finance Blogs #1


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

NEWS THIS WEEK
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