Bob Chief Sees Scope For Deposit Rate Cut

Bank of Baroda chief P S Shenoy today said there was a scope for reduction in deposit rates as the spread of banks have come under pressure because of falling lending rates and the weak trends in international market.

Speaking to reporters at the sidelines of a function on multi-banking today, Shenoy said there was a pressure on the rate of interest generally to dip further.

State Bank of India chief A K Purwar also said there was a soft bias for rates of interest but said that he would prefer stability in the rates in the medium term.