A recent press report said that the interest rate structure of the banks will be destabilised in the short run if rates on savings accounts are deregulated. As per the report, Mr.K.R kamath, Chairman and Managing Director, Punjab National Bank, Said that the rate is the anchor on which the bank builds all the interest rate and if the bank destabilises it and allow it to float then it will destabilise the entire rate structure in the short run.
He also said that mere destabilization will not support the customers. He said that there is a need to deregulate the SB account product as a whole. For instance, if the SB rates are deregulated but if a bank puts a cap saying that a customer will have to maintain a certain minimum balance to get attractive rates then it will defy the purpose.
He also said that the bank aims to achieve 20 per cent and 22 per cent growth in credit and deposits, respectively, this financial year. The bank plans to recruit 9,000 people this year to fill up the vacuum likely to be created by the staff superannuating at various levels.