The Hindu Business Line : BoB cuts exposure to consumer, personal loans

Mumbai, Nov. 7 Bank of Baroda has cut its exposure to consumer and personal loans as these segments are expected to witness higher delinquencies in the near future, Mr M.D. Mallya, Chairman and Managing Director, said.

However, he said the tight loan monitoring and effective recovery process have enabled the banks to reduce their NPAs.

The bank, which reduced its benchmark prime lending rate by 75 basis points across all segments for both existing and new borrowers, plans to reduce deposit rates by 50 basis points by the end of this month.

“The bank will conduct an impact analysis about the prevailing economic situation and take a decision about the timing of the deposit rate cut,” Mr Mallya said.

Mr Mallya was speaking on the sidelines of a FICCI-IBA banking seminar.

Even though the various measures taken by the Reserve Bank of India have infused sufficient liquidity into the system, increase in credit demand in the second half of this fiscal could strain the liquidity, he said.

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