Post another policy rate increase by Reserve Bank of India in its monetary policy review for the 2nd quarter, car loan lender United Bank of India is yet to decide if it should increase interest rates or not.
RBI has hiked repo rate and and reverse repo rate by 25 and 50 basis points to 6% and 5% respectively.
Bhaskar Sen, chairman and MD of UBI said, “It was expected that the RBI will raise interest rates because of inflation concerns. We have not yet decided on raising deposit and lending rates for our bank which will be done at our ALCO (Asset Liability Committee) meeting”.
He added, “I see banks considering raising both deposit and lending rates. Deposit growth rate has been slowing down due to negative real return and so we expect these rates to go up”.