Andhra Bank to review interest rates in April

Andhra Bank has no plans to raise the interest rates soon and will take a call on the issue next financial year.

This was indicated by R Ramachandran, chairman and managing director of the Hyderabad-based bank.

“We are not planning to raise interest rates this year which will come to an end within few days. The rates are currently at a higher level and we have recently increased our base rates and prime lending rates. We will review the situation in next (financial) year,” said Ramachandran at a press meet here.

The bank increased its base rate and prime lending rate, each by 50 basis points to 9.5 per cent and 13.75 per cent respectively, on February 5.

The RBI increased repo and reverse repo rates by 25 basis point to 6.75 per cent and 5.75 per cent respectively in its mid-term credit policy review on March 17, with an eye to fight inflation.

The RBI projected that the inflation may stay at 8 per cent, up from earlier forecast of 7 per cent.

To expand its business in the state, Andhra Bank will focus on small and medium sector as well as service providers, said the top official.

“We are keen to support the SME and service providers in Orissa as a lot of big companies are investing in the state,” he said.

The big industries will need the SME and service providers to get equipment and other services and thus the bank will fund this sector, he explained.

“Hope Andhra Bank will increase its market share in Orissa,” he said.Financial Inclusion

The government of India has instructed banks to set up a branch at villages which have population of more than 2,000 people. Andhra Bank plans 500 such branches in the country, out of which 69 will be in Orissa.