Decision on hiking rates post Sept 30: Indian Overseas Bank

Indian Overseas Bank is likely to review its books before taking a call on hiking base rates. M Narendra, chairman and managing director, Indian Overseas Bank, in an interview to CNBC-TV18 said the bank will have to take a closer look at the spread and credit demand before it cuts any rate.

Also read: Repo hike won't trigger lending rate increase: Vijaya Bank

He was replying to a question if there was scope for raising base rates. “We will have to watch both the liquidity and the short-term rates and all the one-year deposit rates to see how they are going to move.”
He added that if liquidity remains tight, then the bank would have to ensure that the resource mobilisation gets a boost.
The Reserve Bank today raised repo rate by 25 bps to 7.5 percent in its mid-quarter policy review. The policy, however, reduced the marginal standing facility (MSF) rate by 75 basis points from 10.25 percent to 9.5 percent and lowered the minimum daily maintenance of the cash reserve ratio (CRR) from 99 percent to 95 percent of the requirement.