• search

Bank of India hints at cut in deposit rate

Written by: Staff

Mumbai, Feb 27: Bank of India chairman T S Narayanasami today hinted at a cut in the deposit rates to mantain the net interest margin. Talking to newspersons on the sidelines of the meeting of Indian Banks Association (IBA) here, Mr Narayanasami said that the Bank was likely to go for a deposit rate cut soon.

''We have to see the market sentiments, which has to improve,'' he said adding that the system has liquidity as the bank credit offtake was not satisfactory despite a cut in the prime lending rate effected recently. ''Hence, the bank will have to opt for a deposit rate cut'', as otherwise the interest margin would see an impact, he added. The rate cut has to follow. The bank had early this month cut its PLR by 25 basis points to improve the sentiments.

On inflation, he said the bank was prepared for a five per cent inflation, though it was now contained at around 4.3 per cent.


For Daily Alerts

For Breaking News from Oneindia
Get instant news updates throughout the day.

Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more