Allahabad Bank not likely to cut rates soon

June 24th, 2009 - 8:53 pm ICT by IANS  

Kolkata, June 24 (IANS) State-run Allahabad Bank is unlikely to cut either interest rates or deposit rates soon, a top bank official said here Wednesday.
“There is a demand that interest rates should be made affordable but there are other factors that need to be taken into account,” the bank’s chairman and managing director K.R. Kamath told reporters on the sidelines of a banking conference organised by an industry body.

Any cut in deposit rates would make fund mobilisation difficult, he said.

“With G-Sec (government security) rates at 7 percent, you need to have a balancing act,” Kamath said.

He said customers having enough bargaining power are getting loans at sub-prime lending rates, which is cross-subsidised by those with less bargaining power.

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