After yet another policy rate hike by Reserve Bank of India in its monetary policy review for the second quarter, public sector lender United Bank of India is still to decide whether it should raise interest rates or not.
RBI has yesterday increased repo rate by 25 basis points to 6% and reverse repo rate by 50 basis points to 5%.
"It was expected that the RBI will raise interest rates because of inflation concerns. We have not yet decided on raising deposit and lending rates for our bank which will be done at our ALCO (Asset Liability Committee) meeting," Bhaskar Sen, chairman and managing director of the bank said.
"I see banks considering raising both deposit and lending rates. Deposit growth rate has been slowing down due to negative real return and so we expect these rates to go up," he said.