Change in interest rates unlikely: Bankers

Mumbai, June 5 (UNI) There would be no major change in interest rates in the coming months, said Corporation Bank chairman B Sambamurthy today.

While speaking to reporters on the sidelines of Skoch Financial Technologies Summit here today, Mr Sambamurthy said the industry has come across a stagnant phase in growth margins during the past few moths.

''I don't see a major shift in interest rates in the coming months. Banking sector is still in an evolving stage where the concentration will be more on industrial and manufacturing sectors,'' he said.

Commenting on the recent regulatory changes mooted by the Reserve Bank of India (RBI), he said the central bank is aware of the industry pulse and will adopt necessary upgradation in the system whenever necessary. ''RBI knows what is needed to be done,'' he said.

Commenting on the currency appreciation, he said though the surge in Rupee has not claimed a direct impact on the banking sector, it has affected the exports in the country.

The investment margins have almost doubled up in past decades across the industrial sectors especially in real estate and manufacturing.

Corporation Bank's aggregate credits have grown up to Rs 30,000 crore while deposits stand at Rs 42,000 crore.

Earlier while speaking at the conference, Mr Sambamurthy said the technological advancements achieved by the public sector banks must stand in line with the customer aspirations making the transactions smoother at all levels.

''The benifits of core banking and other value added services will yield results only when the customer is fully made aware of these facilities. Banks should categorise the customers into various segments taking into account the investment capabilities. Its time to recognise the inherent power of technolgy and to make it available for the benifit of customers,'' he added.

UNI