Money & Banking

Cost of funds will go up

Our Bureau New Delhi | Updated on March 17, 2011

This (25 basis point hike in both repo and reverse repo rates) has not come as a surprise. The market had already factored it. Even after this hike, the G-secs have not moved up much, which means this was, by and large, factored by the market. The cost of funds for us will definitely go up. If cost goes up, we will have to take a look at pricing. We will try to pass it on to the customer to the extent possible. The asset-liability committee of the bank will meet next week to analyse the Credit policy announcements.

(The author is Chairman & Managing Director, United Bank of India.)

Published on March 17, 2011

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