Some public sector banks, including State Bank of India (SBI), Union Bank of India, Canara Bank, and Bank of India, are increasing the spread on home loans for new customers to protect margins.
'We have a plan to plough back a 'This year in the first half we had profits of more than Rs 31,000 crore.' significant amount of profits this financial year.' 'We have seen this organic plough back of profit is one of best ways to support the equity of the bank.'
Cites steep rise in provisioning for restructured standard assets.
When costs go down, interest rates will go down, says managing director and CEO Aditya Puri.
The lender, however, is not likely to reduce its base rate to which all loan rates are linked.
In an effort to grab a share of the hefty Diwali bonus to employees in government and corporate sector, country's largest lender State Bank of India may raise the interest rate on term deposit rates in next few days.
Indian banks, which are increasingly getting worried due to asset-liability mismatch, have sought the government's approval to float tax-free bonds.
Country's second largest public sector lender Punjab National Bank said on Wednesday it might increase prime lending rate in the range of 25 to 50 basis points, but a decision had not been taken.
It's not necessary to use only external benchmarks, there are multiple avenues to meet the requirement that the RBI wants, the bank said.
In a move that may set the tone for other players, State Bank of India, the country's largest lender, has decided against raising interest rates for the time being. The decision was taken at a meeting of the assets-liability committee on Saturday.
If true then it would be a major disruption in the industry
Banks have issues with their balance sheet profiles, say PSB executives.
SBI is the first major bank to cut its base lending rate this year.
The festive season starts from August and last till December.
Union Bank of India, United Bank of India reduced base rates.
A host of lenders, including State Bank of India, IDBI Bank, Indian Bank and Andhra Bank, have lined up meetings of their asset-liability committees this week, to review their lending and deposit rates.
Your opportunity to earn higher interest by keeping more than Rs 1,00,000 in your savings bank account might soon be limited.
SBI is the first major state-run bank to hike lending rates after short-term rates rose as a result of the Reserve Bank of India's liquidity tightening moves announced in July.
Banks might hold on to lending rates for the time being.
2013 foreign currency non-resident deposits to mature in Sep-Nov
'The overall stress on asset quality is indeed coming down.'
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Bankers remained ambivalent on the impact of Tuesday's policy announcement by Reserve Bank on the cost of funds and refrained from giving a guidance on the direction in which lending rates are headed.
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