 "rate cut, interest rate, RBI")
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.
