The asset-liability committee (Alco) of Karnataka Bank Ltd will take a decision on any reduction in rates, according to its Managing Director, P Jayarama Bhat.
Asked if the bank will reduce the deposit and lending rates following the RBI’s decision to cut repo rates, Bhat told BusinessLine that the bank had already cut deposit rates twice. Hence, Alco has to once again to take a view, he said.
“Lending rates are directly related to cost of funds which once again depends on the recent base rate formula guidelines of RBI which we have to work out separately to take a view,” he added.