Banks would factor in the availability of funds before deciding on reducing fixed deposit rates
Mumbai: Mid-size public sector banks would wait till the mid-term policy review by the Reserve Bank of India (RBI) before taking a call on reducing interest rates on fixed deposits (FDs), top officials said on Monday, reports PTI.
"We will take a call on the reduction of deposit rates after the mid-term policy," Subhalakshmi Panse, executive director of Vijaya Bank, told PTI.
She said that the entire cost structure and overall deposit growth would be taken into account before reducing rates on fixed deposits.
Interestingly, deposit growth registered by Indian banking system fell short of RBI's target last financial year amid liquidity crunch faced by the lenders.
Last fiscal, banks' deposits grew 13.4% to Rs60.72 lakh crore in the year to March 23, below the RBI's projection of 17%.
Country's largest lender, the State Bank of India (SBI), recently reduced fixed deposit rates by 0.25% in tenors upto 240 days.
Bankers said that mid-term policy review on 18th June will bring clarity on the cost structure of the banks and help them take a decision on FD rates.
"Basically, it depends on the fund management position of different banks," General Manager (Financial Management, IRC, Treasury & ID) of Dena Bank, Sudhir Kumar Jain said.
He also said that banks would factor in the availability of funds before deciding on reducing deposit rates.
Central Bank of India's chairman and managing director MV Tanksale and Corporation Bank's CMD Ajai Kumar had also opined that they would wait for the RBI move on 18th June to take a final call on their deposit rates.
Presently, liquidity deficit in the system is hovering around Rs1 lakh crore, much above the RBI's comfort level of around Rs60,000 crore.
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The apex court also expressed its "unhappiness" that the Centre was blaming the High Court when it had itself failed to produce documents to support its case
New Delhi: The Supreme Court on Monday refused to stay the Andhra Pradesh High Court order quashing 4.5% sub-quota for minorities in central educational institutions like IITs and ticked off the Government for the way it has handled the "complex" and "sensitive" issue, reports PTI.
The apex court expressed its "unhappiness" that the Centre was blaming the High Court when it had itself failed to produce documents to support its case.
A Bench of justices KS Radhakrishnan and JS Khehar was critical of the Ministry of Human Resource Development rushing to the apex court with the appeal against the 28th May order of the High Court without documents to justify the policy of carving out 4.5% sub-quota within the 27% other backward class (OBC) reservation.
Without issuing any notice, the bench asked Attorney General GE Vahanvati to produce before it the supporting documents on the issue by tomorrow and posted the matter for hearing on Wednesday.
The bench said it cannot stay the high court order "unless the government produces material to show a detailed exercise was undertaken to carve out the sub-quota."
The Attorney General started submissions by taking "blame on his shoulders" for the outcome of sub-quota policy in the high court by saying that the "argument was not the most brilliant".
He sought some protection in view of the ongoing counselling for IITs for which 325 candidates have qualified for it under the 4.5% sub quota and their career and future could be jeopardised if they are not allowed to appear for the counselling.
When Vahanvati said there was need for some protection in view of the ongoing counselling for IITs, the bench said "we will not order stay".
"First of all you have not produced any documents in the high court. We would have been happy, if you had done so," the bench said.