The Reserve Bank of India (RBI) in its credit policy review on Tuesday deregulated savings deposit interest rate which will push up cost of funds for banks.
A Prabhakar, executive director, Bank of India speaking to CNBC-TV18 about the same said that this move might lead to 25-50 basis points increase in savings bank rates, particularly from banks with lower CASA ratio. RBI has also revised down its growth forecast for the fiscal year ending in March to 7.6% from 8% with a downside bias earlier. Prabhakar feels that the revised credit growth target is more realistic and it is possible that banks maybe able to achieve those credit growth targets. Bank of India eyes a credit growth target of about 16-18% for FY12 Below is the edited transcript of PrabhakarDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
