Festive rate cut not a mispricing of risks: Union Bank of India MD & CEO

In a Q&A, Rajkiran Rai G says retail credit can't make up for tepid corporate demand

The outlook for credit offtake, especially in retail, is good at the close of the second quarter, marked by easing restrictions and an uptick in economic activity, says RAJKIRAN RAI G, managing director and chief executive officer, Union Bank of India, and chairman, Indian Banks’ Association (IBA), to Abhijit Lele. But retail can’t make up for tepid corporate demand. Edited excerpts:

Many banks have gone for interest rate cuts in the festive season. How do you look at it? Will it lead to mispricing of risks?

Deposits are at much lower costs. The cost of funds has gone down while operating efficiencies