Bank Rate cut: SBI to wait and watch

By Our Special Correspondent

CHENNAI, FEB. 16. Commenting on the likely consequences of today's cut in Bank Rate and CRR rates, Mr. Janki Ballabh, Chairman, and Mr. Vepa Kamesam, Managing Director, State Bank of India, said the question of whether the bank would follow suit, that is, reduce its prime lending rate would have to be taken after considering the totality of circumstances. ``The deposit rate may have to come down,'' they told this correspondent later in the day.

Asked whether the lowering of interest rates would benefit the balance sheets of all banks by improving the valuation of their holdings of SLR securities, Mr. Ballabh felt that this might not have been the main reason of the Reserve Bank of India to reduce the Bank Rate. Altogether it is a wait and watch attitude as for as India's no. 1 bank is concerned.

Send this article to Friends by E-Mail

Section  : Business
Previous : SBI bets on retail banking
Next     : Tidel Park branch inaugurated