Indian Bank has decided against hiking its lending rates despite the Reserve Bank of India’s recent move to up its policy rates by 25 basis points.
“As on date, there is no pressure on our liquidity. We have sufficient liquidity. So we have decided not to pass on higher rates to our customers”, Mr T.M.Bhasin, Chairman & Managing Director, Indian Bank said here. He was in the capital to attend a banking conclave. Mr Bhasin highlighted that Indian Bank needed to incur higher cost only if it had to take money from the RBI.
This situation may not arise now with Indian Bank having sufficient liquidity. “For us the deposit growth has been good. There has been accretion of Rs 4,000 crore of CASA in last two months”, he said, adding that there was no pressure on liquidity.