J&K Bank rules out rate cut for now

Jammu and Kashmir Bank today ruled out cut in interest rates as of now since its cost of deposits has not come down.     

"(There will be) no cut in interest rates as of now. Cost of deposits for J&K Bank has not softened as the RBI would have wanted through its measures," Bank Chairman Haseeb A Drabu said.     

The bank's cost of deposits has risen by 120-150 basis points in the last 4-5 months, he said.      Drabu said the bank's margins would be under pressure for the current quarter, but business growth is still expected to be 18-20% in the current fiscal and net profit to rise by 31%.