Private sector bank, HDFC Bank, has said that it could slash interest rates on various retail products soon. The bank's Managing Director and Chief Executive Mr. Aditya Puri said that as the costs are reducing, interest rates too will be reducing soon. The rate cut will be discussed and decided at the meeting of Asset Liability Committee, which will be held at the end of the month.
He further added that due to the lowering of cash reserve ratio by reserve bank, th bank is saving about 0.06 percent. He went on to add that HDFC bank does not have any surplus statutory liquidity ratio (SLR). SLR refers to the amount of deposits that banks have to hold in theform of government securities.
Mr. Puri also said that as far as margin are concerned, the bank will try to achieve its earlier target of 4 percent to 4.2 percent.
It is reported that the bank's growth in loans segment (credit growth) is going as planned due to excellent demand in retail sector and working capital segment, although there are some problems in infrastructure and capital goods sectors.
Mr. Puri also mentioned that the special dispensation package of Rs. 1.9 trillion, recently announced by the government for sick discoms, was a welcome step.