Interest rates on deposits should come down: IB Chairman

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Vijayawada, Oct 31 (UNI) Indian Bank (IB) Chairman and Managing Director M S Sundara Rajan today said if interest rates on deposits first come down, the interest rate on advances would automatically fall.

Speaking to newspersons after inaugurating a E-ticketing kiosk at Vijayawada Railway station in the presence of Divisional Railway Manager Visista Johari, he said already repo rate and CRR had been reduced by the Reserve Bank of India (RBI) and at the same time inflation was also coming down.

He said even if the interest rates came down, it would not affect the benefit of depositors as the rate of inflation was low.

Stating that at present the Indian economy in general and public sector and private banks in particualr were strong, Mr Rajan said, the Centre and RBI were ready to face the challenges of the world economic crisis.

He said RBI had taken steps to allow banks to meet the credit demands of various customers.

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