Bank of Baroda to review interest rates next week

"The Asset Liability Committee (ALCO) is meeting some time next week and would take a look at the issue (of revising the rates). The bank has seen its cost of funds moving up," the official told PTI.     

"Banks cannot afford to see a decline in their deposits. Simultaneously, there is a strong upward pressure on their lending rates as well. A revision has to happen on both sides," the official said.     

 

Following a 0.25 per cent hike in repo rate effected early this month by the Reserve Bank, many banks are reviewing their interest rate structure.     

Country's largest lender, State Bank's ALCO had met last week to discuss the issue and chose to "wait and watch" the situation before taking any action.     

A few banks such as Jammu and Kashmir Bank and Yes Bank have already hiked their PLRs while offering higher rates for bulk deposits which makes a large chunk of their deposit-base.