Delhi based public sector lender, Oriental Bank of Commerce has announced a possible reduction in its deposit rates on certain tenors. The final call will be taken post next week's meeting of the bank's asset-liabiltity committee.
Mr. SL Bansal, Chairman and MD of the bank declined to make any comments on the maturity periods that would be effected from the revision. However, he reiterated that the bank is sure that it is looking to cut the rates and not increase them.
Earlier this month, the bank had reduced the base rate to 10.40% (10.50%). It also slashed the interes rates on fixed deposits of Rs. 15 lakh and above. Base rate is the minimum rate at which a bank lends to its customers.
Despite reducing both the deposits and lending rates, the bank feels it can get its net interest margin (NIM) target of 3% and grow its bottomline by 20% for the current fiscal , said Mr. Bansal.
Bank's retail fixed deposits grew by 28% y-o-y basis, however the credit offtake hasn't been as good. The bank's tier I capital stood at 9.92% compared with the regulatory requirement of 9%.
He further disclosed the bank's plan to raise Rs. 800 crore of tier II capital by the end of the calender year.