Mumbai: Public sector lender Bank of Baroda (BoB) is likely to cut its lending rates very soon, a top bank official indicated.
“We are very seriously considering a rate cut,” BoB’s Chairman and Managing Director Anil Khandelwal told reporters in Mumbai on Monday.
According to him, the bank’s asset-liability committee (ALCO) was likely to meet on 22 February and a decision on a rate cut was likely to be taken then.
When asked whether the rate cut would be across the board or only in select segments, Khandelwal said that this would be discussed before taking any decision.
He, however, said the reduction could be in the range of 0.25-0.50%. A variety of factors would have to be considered before effecting any rate cuts, he added.
Pointing out that the market environment in the Indian banking industry was presently highly-competitive, the BoB chief said “most of our peers have cut their rates...we don’t want to lose customers.”
A clutch of banks have reduced their lending rates in the last 10 days, including big names such as State Bank of India and private sector lender Axis Bank. A few other banks to have also done so, include Kolkata-based United Bank of India, Canara Bank, Bank of Maharashtra and Syndicate Bank.