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Our Bureau

New Delhi, Feb. 11 Indian Overseas Bank (IOB) has no plans to reduce deposit rates till March this year, but may look to lower advance rates in certain segments to boost credit growth, its Chairman and Managing Director, Mr S.A. Bhatt, has indicated.

“I don’t think I will reduce deposit rates till March. This is the first year where there is stability in rates during this period.

However, we will take a call on lending rates only after Tuesday’s meeting with the Finance Minister. Our asset liability committee will meet shortly”, Mr Bhatt told reporters here today.

He said that the bank could reduce its spread to pass on benefits to borrowers and thereby encourage credit pick-up.

“There is liquidity in the market. Credit is not picking up because we are adhering to high interest regime”, Mr Bhatt said.

Mr Bhatt also said that the bank has no plans to raise tier-I capital till end March this year.

The Finance Minister, Mr P Chidambaram, is to hold a meeting of chief executives of public sector banks here on Tuesday.

Indications are that he would encourage bankers to look at reducing deposit and lending rates to boost consumption and investment in the economy.

More Stories on : Fixed Deposits | Interest Rates | Public Sector Banks

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