Business Daily from THE HINDU group of publications
Sunday, Jun 29, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Sunday, Jun 29, 2008 ePaper | Mobile/PDA Version | Audio |
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Money & Banking
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Interest Rates BOB hikes PLR by 50 basis points 
Mr M.D.Mallya K.R.Srivats New Delhi, June 28 Bank of Baroda (BOB) has hiked its benchmark prime lending rate (BPLR) by 50 basis points to 13.25 per cent a year. The increased rate would be applicable from July 1 this year, its Chairman and Managing Director, Mr M.D. Mallya, has said. “Our asset liability committee has decided to increase BPLR by 50 basis points, taking it to 13.25 per cent. There will be no changes in any other interest rates,” Mr Mallya told Business Line. He said the bank had no immediate plans to revise upwards its deposit rates, stating that they were competitive. “Our deposit rates are competitive. In case we need additional liquidity, we can always look at increasing the deposit rates. As of now, the existing deposit rates will continue,” Mr Mallya said. The BPLR hike was prompted by the Reserve Bank of India’s recent monetary actions including a hike in cash reserve ratio (CRR), he said. The bank had last hiked its PLR in March this year. On whether the increase in BPLR would improve the bank’s margins, Mr Mallya said it would certainly increase its interest income, but quickly pointed out that there were other issues like increased costs that have to be factored. “Our endeavour would be to sustain the net interest margin of 2.92 per cent (as on March 2008) in the current fiscal as well,” he said. Meanwhile, Vijaya Bank plans to consider hiking its lending rates sometime next week. “We will meet early next week to take a call on this,” Mr Prakash Mallya, Chairman and Managing Director of Vijaya Bank, told Business Line here on Saturday. More Stories on : Interest Rates | Public Sector Banks
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