The Hindu Business Line : Corporation Bank decision on rate hike this week

Hyderabad April 1 Corporation Bank will take a decision on hiking interest rates in the wake of increase in CRR and repo rates by the Reserve Bank of India, according to the bank's Chairman and Managing Director, Mr B Sambamurthy.

"We will take a decision on hike of interest rates in the Asset Liability and Management Committee meeting of the bank to be held next week" Mr Sambamurthy told newspersons at the inaugural function of the 900th branch and first biometric ATM outlet of the bank at Medchal near here.

Asked about the impact of frequent interest rate hikes, he said it may slow down the home loan segment to some extent.

"Consumers who want to buy homes for the first time will not be deterred by interest rate hikes. However, those who want to invest by making a second buy and traders may look for alternative investment avenues," Mr Sambamurthy said. Interest rates generally follow a cycle and it was unlikely that they would be increasing always, he added.

Financial inclusion

On financial inclusion, he said Corporation Bank had completed household survey in 400 villages recently. It had chalked out a new business model tailor-made to the needs of people in the villages and work would soon begin.

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