Allahabad Bank also is planning to reduce housing loan rates by
25-50 basis points. “The situation has actually worsened from last year, as this year banks might have to reduce interest rates on deposits, so that they could offer some discounts on the lending side to attract customers in the coming festive season,” says Kashyap Jhaveri, Banking Analyst with Emkay Research. In fact, quite a few banks have reduced the deposit rates, which include SBI, ICICI, Bank of India,Bank of Baroda & Centurion Bank of Punjab. SBI had recently revised the deposit rates downwards (from 8.25% annually to 8%) on term deposits of more than one year but less than two years. Hence, for depositors too, the year long party is coming to an end. Big banks with big balance sheets can aff ord to take a hit, but not everyone is in a position to do so. However, small private sector & public sector banks (PSBs) are waiting for divine intervention (expecting that RBI might lower CRR or overnight rates in near future, which might give them some room to lower lending rates).
For Complete IIPM Article, Click on IIPM Article
25-50 basis points. “The situation has actually worsened from last year, as this year banks might have to reduce interest rates on deposits, so that they could offer some discounts on the lending side to attract customers in the coming festive season,” says Kashyap Jhaveri, Banking Analyst with Emkay Research. In fact, quite a few banks have reduced the deposit rates, which include SBI, ICICI, Bank of India,Bank of Baroda & Centurion Bank of Punjab. SBI had recently revised the deposit rates downwards (from 8.25% annually to 8%) on term deposits of more than one year but less than two years. Hence, for depositors too, the year long party is coming to an end. Big banks with big balance sheets can aff ord to take a hit, but not everyone is in a position to do so. However, small private sector & public sector banks (PSBs) are waiting for divine intervention (expecting that RBI might lower CRR or overnight rates in near future, which might give them some room to lower lending rates).For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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