State-run, UCO Bank is unlikely to cut its lending and deposit rates before the Reserve Bank of India's third quarter review of monetary policy on January29th.
Mr. S Chandrasekharan, Executive Director of UCO Bank said, "There is tightness in the liquidity. Hence, deposit rates are staying firm. We will wait for signals from RBI on the direction of interest rates. We are unlikely to revise our rates before the monetary policy".
Earlier this week, HDFC Bank has reduced its base rate by 10 basis points to 9.7 per cent. But most of the banks have maintained their present rates despite there have been demand for rate cuts to revive the slowing growth of the Indian economy.
Mr. Chandrasekharan said that UCO bank had been reducing its dependence on bulk deposits and focusing on mobilization of low-cost deposits to keep its cost of funds under control.
The state-run bank has also witnessed 18.5 per cent growth in deposits and 14.7 per cent growth in advances in 2012. The bank is expecting around 20 per cent growth in its total business in the current financial year.