With inflation turning negative for the first time in 30 years, banks are gearing up for interest rate cut up to 100 basis points.
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“Interest rates should come down. We will take a look on Friday as to how much deposit and lending rates further can be cut,” UCO Bank Chairman and Managing Director S K Goel said. “My rough estimate is that 100 basis points at least, we will be able to reduce,” Goel said.
Kolkata-based UCO bank will hold its ALCO (Asset and Liability Committee) meeting on Friday to take a view on rate cut.
Meanwhile, State Bank of Bikaner and Jaipur, the largest subsidiary of SBI, reduced deposit rates by up to 100 basis points on various maturities effective on Thursday.
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