The Hindu Business Line : Smaller banks yet to decide on rate cuts

Mr K.V.S. Manian, Head of Retail Liabilities and Branch Banking, Kotak Mahindra Bank, said “we have not made up our minds yet on the rate cut. It will stay put for now”.

He admitted to the credit off-take being slow on the home loan front compared to the past, but on the car and personal loans front, ‘there has been no problem’, he said.

Karur Vysya Bank is also not planning to take the leap just yet. Its Chairman, Mr P.T. Kuppuswamy, said the credit off-take has actually improved in his bank. “Between last March and now, we have registered 18 per cent growth in credit off-take. We achieved 21 per cent last year and expect it to equal before the close of this fiscal.”

While conceding a to the drop in construction loan off-take, he said the market is was also witnessing some saturation in the propensity of those who could borrow.

The CEO of Dhanalakshmi Bank, Mr P.S. Prasad, said: ‘We prefer to wait and watch,’ when asked if his bank would initiate a cut in interest rate.

Dr V.A. Joseph, Chairman, South Indian Bank, said the bank is not contemplating any rate cut for the present. SIB’s credit growth, according to him, is comfortable at 30 per cent.

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