There is no fix number as MSF is there to meet the frictional liquidity conditions. The impact on cost of funds because of marginal standing facility rate being cut by 50 basis points yesterday would depend from bank to bank. Those banks which depend more on bulk funds would be impacted more.
FCNRs could pull USD 8-10 billion in the Indian market, but we need more clarifications on the scheme to entice investors towards it, says Shyam Shrinivasan, MD & CEO, Federal Bank.
Speaking to CNBC-TV18, Shyam Srinivasan, managing director and chief executive officer, Federal Bank says the popularity of FCNR‘s will now go up, providing the bank an opportunity to raise more dollars.
The Kerala based Federal Bank, which is also a gold financer today said that its gold loan portfolio was safe at the moment, however any further slide in yellow metal prices would call for aggressive intervention.
Shyam Shrinivasan, MD & CEO, Federal Bank, says that the bank has raised deposit rates for select buckets like retail customers, below Rs 15 lakhs for one to two years and the second in 90-120 days category. The rates are realignment to ensure competitiveness.
In an interview to CNBC-TV18, PC John, executive director of Federal Bank says, there can be a slight reduction in the net interest margin (NIM) ahead. “FY13, we are expecting between 3.60% and 3.70%, but that itself will be a high level of NIM,†he adds.
In an interview to CNBC-TV18, Shyam Srinivasan, managing director and chief executive officer of Federal Bank says, FY12 margins of the bank is likely to be at 3.75%.
Executive director of Federal Bank, PC John, says that they expect flows to NRE deposits to increase post RBI's move to open up interest rates on NRE and NRO deposits.
CNBC-TV18 catches up with Shyam Shrinivasan, managing director and chief executive officer of Federal bank to get his perspective of business after RBI hiked limit on NRI deposits by 100 bps.
Along with the traditional private sector elites like HDFC Bank or ICICI Bank, Kerela-based Federal Bank, of late, has emerged as a darling of the stock market. In the last one year, its shares fell 17.35% as against a drop of 27.40% in the 14-share Bankex, a barometer of banking stocks in the BSE.