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SBI may raise saving deposit rate by up to 125 basis points

Earlier this week, the RBI had deregulated the savings bank deposit interest rate with immediate effect giving banks freedom to determine their own rates

Mumbai: The country’s largest lender State Bank of India (SBI) today indicated that it could increase interest rate on savings bank accounts by up to 1.25% in view of competition following freeing of such rates by the Reserve Bank of India (RBI), reports PTI.

“On an average...we are expecting 100-125 basis points increase in the funding cost of savings bank,” SBI chairman Pratip Chaudhuri said.

Earlier this week, the RBI had deregulated the savings bank deposit interest rate with immediate effect giving banks freedom to determine their own rates.

Immediately after the announcement, private sector Yes Bank, a relatively small player, had raised savings rate by 200 basis points to 6%.

Banks now offers 4% on savings bank accounts.

When asked about the impact of RBI decision on deregulation, Mr Chaudhuri told a popular business TV channel in an interview, “I think that’s (rise in interest rate on savings bank) going to be inevitable. We are prepared for some pressure on the cost of saving bank funding.”

He, however, said, “We would not be the first mover,” adding that SBI will not be too worried as it has 34% of its total deposits in saving bank accounts on account of is wide distribution network. “We will have to see how other banks play it out and then we will take appropriate policy action,” he added.

By freeing the savings bank deposit rates, the RBI has demolished the last bastion of the regulated interest rate regime. As part of the economic reforms programme, the RBI had earlier given freedom to banks to determine fixed deposit rates, depending on their asset-liability positions.

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Unease in Team Anna; Hazare hints at revamp

The thinking on reconstituting the team comes ahead of the crucial meeting of the core committee in Ghaziabad (Uttar Pradesh), on Saturday which will not be attended by Mr Hazare, who is on a vow of silence from 16th October

New Delhi: Social activist Anna Hazare Friday hinted at expansion of his core committee as a sense of unease gripped his team over allegations of financial misconduct by some of its key members, reports PTI.

The core committee of Team Anna will be expanded soon, journalist Raju Parulekar, who is Mr Hazare’s official blogger, said as two key members Medha Patkar and Kumar Vishwas demanded ‘overhaul; of the core committee.

He, however, declined to go into details of when and how the revamp will take place.

The thinking on reconstituting the team comes ahead of the crucial meeting of the core committee in Ghaziabad (Uttar Pradesh), on Saturday which will not be attended by Mr Hazare, who is on a vow of silence from 16th October.

The meeting comes against the backdrop of a series of allegations against key members like Mr Kejriwal and Ms Bedi as well as resignation of two prominent activists Rajinder Singh and PV Rajagopal citing the political turn taken by Mr Hazare’s anti-corruption movement.

Mr Parulekar also said Mr Hazare is contemplating forming a pan-India apolitical organisation to achieve his objective of a change in whole electoral system.

“The new outfit would aim at not playing the game of election but to change the rule of the game of election,” Mr Parulekar said adding “it will be an apolitical organisation.”

Though Ms Patkar and Mr Vishwas did not criticise Kiran Bedi and Arvind Kejriwal, who are facing flak over the running of their NGOs and their financial integrity being questioned, they have referred to the allegations faced by the core committee members.

“I don't think there is a difference of opinion. The only thing is a bit of overhauling is certainly becoming necessary because there are a number of allegations and core committee members are being targeted,” Ms Patkar, who will not be attending tomorrow’s meeting due to prior engagement, said.

Another prominent member Santosh Hegde will also not attend the meeting.

Mr Vishwas shot off a letter to Mr Hazare demanding suspension of the core committee and sought its expansion to make it more representative against the backdrop of Congress leaders targeting it.

“Such attacks (against Team Anna members) and the subsequent clarifications will strengthen the conspiracy to divert the attention from the key issues...I request you to give greater representation to the core committee consisting of limited members and turn it into a hard-core committee comprising of 121 crore people.

“I once again urge you to suspend the present core committee and create a new system to enable us to see a corruption-free new India,” Mr Vishwas, a lecturer-poet, said.

He said the leaders of the ruling party were targeting Mr Hazare and each member of the core committee and trying to tarnish their public image and credibility.

In a veiled attack on key Team Anna members, Mr Hegde said, “Anna’s strength does not lie in a core committee or the people’s honesty in the core committee.” However, he cited a prior commitment in Mumbai for not attending the meet and said there were no differences.

Meanwhile Rajinder Singh, who quit Team Anna due to differences over its political approach, alleged that Anna Hazare deviated from his objective by supporting a ‘corrupt’ candidate in Hisar bye-poll and that his team is full of ‘arrogant’ people.

Mr Singh also attacked Kiran Bedi and Arvind Kejriwal, alleging they were the ‘most arrogant’ members of Team Anna.

Being former bureaucrats they are in the habit of throwing their weight about and imposing themselves on others, he alleged.

Lawyer Prashant Bhushan, another member, also triggered a controversy by advocating plebiscite in Kashmir, evoking strong opposition from Mr Hazare and other team members.

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COMMENTS

S H Subrahmanian

6 years ago

I'm reminded of our popular sport: Cricket.
One fellow bowls 'as he doesn't want the ball'...! - intention to make the batsman out!
Ten around to make batsman out!
The batsman hits 'as he doesn't want the ball'...!
Why then he doesn't send the 'ball' tman who's there 'with open hands' to receive ...!
Ten thousand men in the stadium clap when one is declared out...!
The third umpayar now declares him '
not out'...!
And we at our homes mutter ...'it's match fixing' ...!
Indian democracy is just like this. The entire government machinery busy with targetting the whistle blowers ..How a revamp will take place?
Has the government succeeded in averting a bill and/or bring one ... Who's going to implement?

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