Business Daily from THE HINDU group of publications
Tuesday, Jan 15, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Tuesday, Jan 15, 2008 ePaper | Mobile/PDA Version |
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Money & Banking
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Interest Rates Rate reduction: Vijaya Bank looks to RBI signals Our Bureau Mangalore, Jan.14 Vijaya Bank will wait for the quarterly monetary policy review of the Reserve Bank of India (RBI), which is scheduled for the month-end, before taking a decision on the revision of interest rates. This comes close on the heels of the suggestion by the Union Finance Minister, Mr P. Chidambaram, to reduce interest rates by 50 basis points to encourage investment and consumption to boost economic growth, at a recent meeting of the chiefs of public sector banks. Replying to a query on interest rates reduction, Mr Prakash P. Mallya, Chairman and Managing Director, said: “Most of the CMDs, like me, are waiting for the monetary policy review. We will take a decision soon after that.” But lending rates will not go up further. It has stabilised at the present level, he said. Mr Mallya was here for the inauguration of the 1001th branch of the bank. Stating that the margins of the banks are under pressure, he said a reduction of 0.5 percentage point in lending rates will lead to reduction in deposit rates by 0.5 percentage point. “Depositors may not like this reduction,” he said. BASEL IIMr Mallya said that the bank would be Basel-II compliant by the end of September, ahead of the March 2009 deadline set by the RBI. The bank has implemented core banking solution in 618 branches covering 90 per cent of its business. By March 2009, all the branches will be brought under CBS. BIZ GROWTHThe bank has targeted a business of Rs 76,000 crore by the end of the current financial year. It plans to cross a business level of Rs 1 lakh crore by early 2010, he said. The net profit may reach Rs 425 crore by the end of the current fiscal. “I will not be surprised, if it crosses Rs 450 crore,” he said. Vijaya Bank to focus on low-cost deposits Vijaya Bank may go slow on lending Vijaya Bank increases lending rate Vijaya Bank posts 39% growth More Stories on : Interest Rates | Public Sector Banks
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