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Mr Albert Tauro

Our Bureau

Mangalore, Nov. 10 Vijaya Bank, which reduced its benchmark prime lending rate (BPLR) by 75 basis points on Monday, is likely to reduce its deposit rates in the next 10-15 days.

Speaking to presspersons on the sidelines of a function to distribute ‘Vijaya Kisan Credit’ cards to farmers in Mangalore on Monday, Mr Albert Tauro, Chairman and Managing Director, said that the bank has reduced BPLR from 14 per cent to 13.25 per cent with effect from November 10. The reduction in rates will be passed on to the customers, he said.

On deposit rates, Mr Tauro said that deposit rates will come down in 10-15 days. “It may be about 50 bps to 75 bps. However, it depends on environment,” he said.

One of the concerns has been that deposit rates have been high. It has gone up in the last two to three months. Some of the banks had gone in for 12 per cent interest rates in bulk deposits. “But our bank did raise high rate bulk deposits,” he said.

He said there may be a marginal increase in bad debts in the current scenario. The bank is fully geared to tackle this at regional and head offices. He said the instalments overdue for over a month — called at special watch account — are being monitored closely.

The bank, which has capital adequacy ratio of 10.41 at the end of September, had submitted a proposal to the Government seeking capital to the tune of Rs 700-800 crore. Stating that it was confident of getting capital from the Government, he said, with that the CAR of the bank will reach 12 per cent.

The bank has achieved more than 96 per cent coverage of its business under the CBS platform. The bank will be on 100 per cent CBS platform by March 2009, he said.

More Stories on : Interest Rates | Public Sector Banks

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