State Bank of India (SBI) has raised rates on deposits of about Rs 1 crore and above by 100 bps across on maturities.
In an interview to CNBC-TV18, Pawan Kumar Bajaj, MD of United Bank of India shared his views and readings on the same and what his bank is planning.
Bajaj said that interest rate depends upon the liquidity position of the bank.
He further said that overall market liquidity has come down but bank like us, we still have excess liquidity.
"SBI has raised rate of interest by 100 bps which for a bulk deposit, rates are very low; much below than reverse repo rate and even by increasing 100 bps I do not think we are going to lose anything if they have asset to finance or any other thing but bank like us, right now we are not thinking to do that and we will review the situation after that if liquidity will be tighten again in the market, but earlier we were offering better rates than SBI for these kind of deposits," he said.
Talking about capital requirement front, he said a lot of data has been submitted to the government's department of financial services. However, right now we are not aware of how much we are going to get.
On capital raising front, he said we have our plans of raising capital from the market and we have got permission from Sebi and government of India to raise Rs 1,000 crore by way of qualified institutional placement (QIP).
Watch accompanying video for more details.
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