High interest rate, which is caused by the soaring inflation, has affected the banks’ performance. Still, banks were ready to cope with it for a simple reason that their fundamentals were quite strong, said the bankers, who came out of the Reserve Bank of India (RBI) headquarters here after holding a meeting with the RBI deputy governors, Rakesh Mohan, V Leeladhar and Shyamala Gopinath. HN Sinor, CEO of Indian Banks’ Association (IBA), said that high interest rate caused by the high oil prices would have its repercussions on the retail portfolio of the banks. There are a few other challenges too before the banks, but it will not affect their performance as their fundamentals were quite strong, said Sinor. The banks will be able to show their good results when they announce their first quarter results later this month, he added.
The delegation was led by Bank of India chairman and managing director, TS Narayanasami. Tuesday’s bankers’ meeting with the RBI officials was held on the eve of the RBI’s review of first quarter of its already announced annual monetary policy, which was slated for July 29. Some of the other bankers that attended the meeting include State Bank of India chairman, OP Bhatt, Punjab National Bank CMD, KC Chakrabarty, and Vishwavir Ahuja, India head of Bank of America.
