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Bank of Maharashtra may hike lending rates from October 1 following the Reserve Bank of India's latest move hiking its repo rate by 25 basis points.
“When last time, the RBI hiked its policy rate on July 16, we did not go in for a hike.
“But, this time, since it is an increase of 25 basis points, we may hike our interest rates and pass it on to our customers”, Mr A.S. Bhattacharya, Chairman and Managing Director of the bank, told Business Line here.
He, however, noted that the actual decision has to be taken by the Asset Liability Committee (ALCO) of the bank.
Bank of Maharashtra's base rate currently stood at 10.5 per cent.
The board of directors of the bank will meet on September 20 and may discuss the RBI policy rate action, Mr Bhattacharya said.
The bank is now looking at a credit growth of 18 per cent this fiscal, lower than the earlier envisaged growth rate of about 25 per cent.
The credit growth, so far this fiscal, has been only to the tune of 7-8 per cent. The bank is also aiming for deposit growth of 15 per cent this fiscal.
He expressed confidence that bank would be able to get capital support of Rs 800 crore from the Central Government for 2011-12.
Bank of Maharashtra had in July 2010 received a capital infusion of Rs 350 crore from the Central Government..
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