Date:28/10/2005 URL: http://www.thehindubusinessline.com/2005/10/28/stories/2005102802300600.htm

Back IDBI hints at marginal hike in retail rates

Our Bureau

Mr V.P.Shetty, CMD, IDBI, launching the airline ticketing through the bank's ATM in Mumbai on Thursday. - - Paul Noronha

Mumbai , Oct. 27

IDBI Ltd is unlikely to make any major change in its interest structure, but a marginal tinkering in retail rates is possible, said Mr V.P. Shetty, Chairman and Managing Director, IDBI Ltd.

Speaking to presspersons on the sidelines of a press conference, Mr Shetty said, "The signal has to be received in the right perspective and the concern of the Reserve Bank of India has to be read properly. Therefore, there is a need to revisit the interest rate structure. But the hike will be marginal."

IDBI's asset liability management committee, which met on Thursday, decided to leave the rates untouched as of now and review them in January. The bank could only see a rise in the retail rates of its commercial banking strategic business unit (CBSBU).

"We have a large portfolio of housing loans and we had done some reduction in the festive season. So, that could see some rate hike in January," he said.

IDBI Ltd jointly with Indian Airlines on Thursday launched the facility of booking airline tickets through ATMs. IDBI customers can now use their debit cards at the ATMs to buy IA tickets on real time availability.

The transaction slip generated by the ATM can be exchanged for a boarding pass at the airport on showing identification proof.