Business Daily from THE HINDU group of publications
Saturday, May 30, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Saturday, May 30, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Money & Banking
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Interest Rates SBI Chairman sees softening bias in interest rates 
Mr O.P. Bhatt, Chairman, State Bank of India, with the Chief of Army Staff, General Deepak Kapoor, at the launch of Defence Salary Package — Army , in the Capital on Friday. Our Bureau New Delhi, May 29 Banking behemoth State Bank of India sees a “softening bias” in interest rates in the coming weeks even as it plans to take a call on fresh cuts in lending rates only after the June 10 bankers’ meeting with the Finance Minister, Mr Pranab Mukherjee. “There is definitely a softening bias on interest rates. They are not going to increase. There is so much liquidity. As far as our rates are concerned, we will take a view after the meeting with the Finance Minister,” Mr O. P. Bhatt, SBI Chairman, told reporters on the sidelines of the launch of ‘Defence Salary Package — Army’ here today. Mr Bhatt noted that the bank would have to factor-in issues such as impact on net interest margin (NIM) before taking a call on reducing lending rates. In the last six months, SBI has lowered its prime lending rate by 150 basis points. In its Annual Credit and Monetary Policy for 2009-10, the RBI had said that there was room for banks to further bring down their lending and deposit rates. Mr Pranab Mukherjee, soon after taking charge, also said that he would get bankers’ committed to a “more benign plan of action”. On credit expansion in the economy, Mr Bhatt told reporters today that credit offtake was not strong at this point of time, but is expected to pick up during the year. Since October 2008, the RBI had cut the repo and reverse repo rates by 425 basis points and 275 basis points respectively. HDFC chief sees interest rates falling further India Inc seeks lower interest rates, higher credit flow Banks should balance interest rates, rising NPAs: Goel More Stories on : Interest Rates | State Bank of India
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