"We will take the final call on interest rates on deposits today itself, as the real interest has become almost negative in the wake of a high inflationary pressure. We would increase the deposit rates possibly by 50 basis points," said K Ramakrishnan, chairman and managing director, Andhra Bank.
According to him price stability is one of the key to a sustainable economic growth and the regulator have to take the necessary measure.
"Containing inflation at a moderate level is a key to a sustainable economic growth and the regulator should play its role. Subsequently, all the banks have a role to play in channelising the flow of credit in the desirable sectors ," he added.
The Hyderabad based bank is also planning to raise $120 million as overseas borrowing in the next couple of weeks.
Talking about the capital raising plans for the current fiscal, Ramakrishnan said, "There is a headroom for raising about $300 million through this route but for the time being we will raise $120 million."
Similarly the banks would also raise Rs 200-300 crore in December, 2008 as Tire II bonds.
