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New Delhi: Two of the largest public sector lenders State Bank of India and Punjab National Bank are getting ready to reduce rates after the expected announcement of massive stimulus packages by the centre and Reserve Bank of India (RBI) on Saturday.
OP Bhatt, chairman, SBI, on Friday said that the bank would examine its interest rates after the stimulus package is announced by the government and the Reserve Bank of India on Saturday. "There is some talk of stimulus package. When the package comes, we will examine, and say what we shall do," Bhatt told reporters at the sidelines of India-Russia meet.
PNB on Friday indicated that it would reduce interest rates following signals from the RBI, which will unveil key policy initiatives on Saturday to further ease liquidity.
"We have done it (reduced interest rates). We are committed to doing so continuously as and when we feel it is necessary and have the capability to do so," PNB chairman and managing director K C Chakrabarty told PTI in an interview. The bank is at the forefront in reducing interest rates, he said, adding "today my (PNB's) rates are the lowest in the system."
Chakrabarty said the RBI is very clearly giving the signal that interest rates are going down. Now interest rates have to be brought down, he said, adding "we must move towards a benign rate regime. We must reduce the rates." Commenting on the pre-emtive measures, Chakrabarty said, "I have already done the rate cut because I know it is going to happen. By cutting rates I am putting pressure on my competitors. In a competition it always happens.
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