Banks Set To Cut Deposit Rates

Depositors will fell the impact of the repo rate cut soon even though lenders may not see their loan rates going down.

The asset-liability committees (Alco) of most of the commerical banks will meeting during the week to take stock of the situation arising out of the 50 basis points cut in repo rate. Most of the banks will cut their deposit rates.

However, lending rates may remain untouched for the time being. State Bank of India chairman A K Purwar told Business Standard that his bank would re-price its liabilities.