Foreign, Private Banks Plan Review Of Prime Rates

The heads of private sector banks were of the opinion that the formal announcement of a cut would be made after the board meetings of the banks. The head of Centurion bank, A Sen said, we are considering a cut in the rates and a decision will be taken later in the month. At present the bank is offering a rate of 19.5 per cent.

Senior vice president of treasury at ICICI bank P H Ravikumar is of the opinion that there is a likelihood of the PLR being brought down by at least 1 to 1.5 per cent. Presently the bank has a prime lending rate of 18.5 per cent.

Bankers are of the opinion that there is a downward pressure on interest rates and the rates that private sector banks and foreign banks offer cannot be divorced from the market.

However, bankers were doubtful whether