Budget indicates trend towards soft interest rate: SBI chief

The Union Budget has indicated a trend towards soft interest rate regime with a possible room for downward revision, State Bank of India chairman Janki Ballabh said on Thursday.

The Budget has already provided for 50 basis point cut in the administered interest rate and "we will have to take an overall view before taking any decision," Ballabh said.

Describing the budget as growth and reform-oriented with emphasis on agriculture, he said it has also sent a strong signal towards banking sector.

Tax incentives for making provisions for non-performing assets and setting up of asset reconstruction company would help the profitability of banks, he added.

PTI

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