Rates to remain elevated for loans, bulk deposits: Bank of India MD & CEO

With rising cost of funds, loans rates on highly rated corporates will need a relook to protect margins, he says

With the quest for resources becoming intense, Bank of India is stepping up efforts to raise low-cost deposits through branch networks in semi-urban and rural areas. With the rising cost of funds, loan rates for highly rated companies will need a relook to protect margins, Rajneesh Karnatak, managing director and chief executive, tells Abhijit Lele. Edited excerpts:

The Reserve Bank of India (RBI) has kept the policy rate and the stance unchanged. What is the signal to the market? How are the rates likely to move in the balance part of the year?

The pause was expected.