 "Banks to follow SBI on deposit rate cuts")
Following State Bank of India (SBI)'s decision to cut deposit rates, other banks are likely to follow suit but with a lag, as they're awaiting the Reserve Bank of India's monetary policy in October.
Senior executives with both public and private banks agree that interest rates - both lending and deposit - are showing a downward trend. Yet, each bank would review the liquidity situation and maturity profile of deposits before taking call. P Marathe, executive director of Bank of India, said his bank would study liquidity pattern before taking a decision to cut rate. The upcoming monetary policy will also weigh on the decision. RBI will announce the monetary policy on October 4, the first under new governor Urjit Patel.
Senior executives with both public and private banks agree that interest rates - both lending and deposit - are showing a downward trend. Yet, each bank would review the liquidity situation and maturity profile of deposits before taking call. P Marathe, executive director of Bank of India, said his bank would study liquidity pattern before taking a decision to cut rate. The upcoming monetary policy will also weigh on the decision. RBI will announce the monetary policy on October 4, the first under new governor Urjit Patel.