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bps to 9.8% last month.
UCO Bank CMD Arun Kaul said even though the rates in the call money might cool down to the extent of 9.50% from 10.25% after the cut in the MSF, demand in credit is already outpacing the deposit growth and, due to the festive season, this might become more glaring and force banks to raise rates.
Even, lenders like Bank of India and Oriental Bank of Commerce (OBC), which had not raised their rates, might have to do so after the RBI policy decision. Bank of India had cut its base rate on July 3 by 25 bps to 10%, while OBC had rolled back its 25 bps base rate cut decision on July 19.
“For 8-10 days, you will not see any action on rates, though those that had reduced their base rates may reverse their steps,” said OBC CMD SL Bansal.