Indian Bank to decide on rate cuts in 20 days: CMD

Amid demand from the industry to cut costs of borrowing, public sector lender Indian Bank today said a decision to cut both deposit and lending rates would be taken in the next 20 days.

"We can further cut rates," Indian Bank CMD M S Sundara Rajan told reporters prior to pre-budget meeting of Finance Minister Pranab Mukherjee with financial sector experts here.

The Chennai-based bank has a scope to cut both deposit and lending rates, he said, adding a decision to this effect would be taken in the next 15 to 20 days.

Asked whether the bank needs re-capitalisation, he said, the bank is well capitalised and there is no need for government support.

Yesterday, ICICI Bank reduced its lending rates, including home loan rates, by 50 basis points to 15.75 per cent.

With the industrial production continuing its slide in March, India Inc has been asking banks for lending rate cuts.