A recent press report said that Canara Bank has planned not to hike its lending any time soon. The bank has decided not transmit the burden to borrowers immediately.
Mr. S. Raman, Chairman and Managing Director, Canara Bank, told the press that the hike depends on the change in deposit rates. He mentioned that the change in lending rates will not take place unless there is a change in the deposits rates. He also said that the hike in lending rates will take place immediately if the deposit rates harden.
He added saying that it will take some more time for transmission to happen if there is no upward pressure on deposit rates.
He said that he did not expect much impact due to a repo rate hike of 0.25 basis points because rates have gone up 3-4 per cent, in the past 15 months.
Canara Bank is a state-owned financial services company in India. It was established in 1906, making it one of the oldest banks in the country. The bank offers technology banking, such as, Internet Banking, Mobile Banking and Funds Transfer through NEFT and RTGS across all branches. The Bank has further enhanced its basket of new tech-products for customer convenience like Canara Gift Cards, Canara Campus Card etc. It also offers loans such as home loan, personal loans, education loan, vehicle loans etc.