The Hindu Business Line : Central Bank may reduce retail loan rates by 50 bps

Mumbai, Feb. 6 Central Bank of India may reduce lending rates on retail products by 25-50 basis points. The bank’s asset liability management committee is likely to meet this week or next week to take a decision.

Ms H. A. Daruwalla, Chairperson and Managing Director, Central Bank of India, said here on Wednesday that the bank is reviewing rates on all its retail loan products, except housing. “We will review the rates on all our retail products, except housing loans. As far as housing loans are concerned, our rates are one of the lowest,” she said. Housing loans form 50 per cent of the bank’s retail portfolio, while auto loans account for about 2.5 per cent.

Apart from housing, the bank offers the lowest rates on loans to cold storages, SMEs and SSIs, which are part of productive sectors, Ms Daruwalla said.

Prime lending rates and deposit rates are likely to hold steady till the end of this fiscal, she said. “Unless the cost of deposit really comes down, I cannot reduce the BPLR. For now, interest rates will be stable,” she said.

The bank has identified recovery from written off assets as a thrust area and has set a target of Rs 600 crore for recovery for the fourth quarter. It is even looking to sell off two to three large corporate accounts, if it gets the right price.

“We are closely monitoring our written off assets. Up to December, we have not written off any single account,” Ms Daruwalla said.

The bank signed an agreement with Thomas Cook and MoneyGram International Money Transfer to provide inward remittance facility. This will help the bank increase its fee-based income and do cross-selling of its products, Ms Daruwalla said.

More Stories on : Interest Rates | Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SKS Microfin invests Rs 8 cr in IT initiative

Kotak Life expands in South

LIC launches Health Plus

IMF twin reports applaud India’s macroeconomic policies

Karnataka Bank review meet

Syndicate Bank opts for QIP route to raise capital

SBT office in Dubai okayed

SBH branch at Marathahalli

Glitnir Bank in pact with Bhilwara Energy

Central Bank may reduce retail loan rates by 50 bps

Bond prices gain 15 paise

Call rates steady

For frequent flyers

Vijaya Bank eyes acquisition

ICICI Lombard does Rs 1,100 cr motor cover biz