Central Bank cut deposit rates by up to 0.50%

Public-sector lender Central Bank of India has reduced deposit rates by 0.25-0.50 per cent across various maturities inorder to reduce cost of funds, its Chairman said.

"We have cut the deposit rates by 0.25-0.50 per cent," Central Bank of India Chairman and Managing Director S Sridhar told reporters here today.

The country's largest lender, State Bank of India and Bank of Maharashtra had recently reduced their deposit rates by up to 0.50 per cent in various maturities.

Central Bank expects to maintain its net interest margin at 2.25 per cent in FY10 as against 1.97 per cent in the last fiscal, he said. The bank has a comfortable capital adequacy ratio of 12.35 per cent.

 

The bank is also looking at extending its existing homeloan offers and will take a call in the near term, he added.