OBC to decide on lending, deposit rates

"The bank's asset-liability committee will meet in a week's time to decide about review of lending and deposit rate," OBC CMD A K Misra told reporters on the sidelines of conclusion of debt waiver scheme for farmers announced by the Centre.     

However, he added, the rates would not be increased to a level, which would become a burden for both the industry and productive borrowers.     

 

The prime lending rates of bank stands at 13.25 per cent at present.     

Major lenders like SBI, Punjab National Bank (PNB) and Canara Bank have recently raised their benchmark prime lending and deposit rates.     

While, country's biggest lender SBI increased its fixed deposit rates by up to 75 basis points, and PLR by 50 basis points to 12.75 per cent, the second-largest lender PNB also raised benchmark prime lending rate and deposit rates by up to 0.5 per cent.     

To tame soaring inflation, the RBI had raised short-term lending rates (repo rate) and mandatory banks' deposits with the central bank (CRR), by 50 basis points each, putting interest rates under pressure.