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SBI hints at further cut in interest rates
New Delhi, Oct 29: Expecting RBI to maintain stableand soft interest rates in credit policy, State Bank of Indiatoday hinted at further cut in home and consumer loan rates.
New Delhi, Oct 29: Expecting RBI to maintain stable
and soft interest rates in credit policy, State Bank of India
today hinted at further cut in home and consumer loan rates.
"I am a strong advocate of stability in interest rates
with a soft bias. With global trends, the soft interest bias
will continue in India as well," SBI Chairman Arun Kumar
Purwar said after inaugurating a new industrial finance branch
here.
Asked whether he expected a cut in bank rate, Repo rate and cash reserve ratio in the forthcoming busy season credit policy, he said "it is for RBI to decide. Let us wait till November 03."
Market expects RBI to slash bank rate by 0.5-1.0 per cent and Repo rate by 0.5 per cent on account of excess liquidity and decline in yields on 10-year government papers to less than 5.0 per cent.
RBI had slashed bank rate by 0.25 per cent to 6.0 per cent in the April slack season credit policy and Repo rate by 0.50 per cent to 4.5 per cent a month ago.
The CMD of the country`s biggest commercial bank said further cut in interest rates on home loans and consumer loans can`t be ruled out in the medium term.
"If interest rates come down, we have to have a relook at our rates," he said.
On retail loans, Purwar said "SBI has always stressed on retail segment. Retail loans are secure and recovery is high. Where NPAs are lower at 2.0 per cent, interest on such segments should come down."
Bureau Report
Asked whether he expected a cut in bank rate, Repo rate and cash reserve ratio in the forthcoming busy season credit policy, he said "it is for RBI to decide. Let us wait till November 03."
Market expects RBI to slash bank rate by 0.5-1.0 per cent and Repo rate by 0.5 per cent on account of excess liquidity and decline in yields on 10-year government papers to less than 5.0 per cent.
RBI had slashed bank rate by 0.25 per cent to 6.0 per cent in the April slack season credit policy and Repo rate by 0.50 per cent to 4.5 per cent a month ago.
The CMD of the country`s biggest commercial bank said further cut in interest rates on home loans and consumer loans can`t be ruled out in the medium term.
"If interest rates come down, we have to have a relook at our rates," he said.
On retail loans, Purwar said "SBI has always stressed on retail segment. Retail loans are secure and recovery is high. Where NPAs are lower at 2.0 per cent, interest on such segments should come down."
Bureau Report