State owned Dena Bank has said that it will not cut its lending rates any further as the interest rates that the bank is charging on advances is already one of the lowest in the market.
This statement comes after SBI slashed its rates, this June, by 50 to 350 basis points for the SME and agri-sectors. But, it kept its retail loan rates, like home loan rates, the same.
Talking further on the matter, the Chairperson and Managing Director of Dena Bank, Ms. Nupur Mitra said that the bank's interest rates were competitive enough, be it the SME segment or other segments.
The bank's base rate stands at 10.45 percent. Adding that the bank will not hesitate to increase its deposit rates, in case there was a shortage of funds for credit growth, she said, "Inflation is still around 10%... there is no question of a deposit rate cut now. We may look at raising deposits if the situation demands."
Expressing worry over credit growth in agricultural sector, she said, "Credit offtake will be affected in areas where no alternate irrigation arrangement is available".In our country, farmers are still dependent on monsoon to get a good harvest, this despite the fact that about 70 percent of our population in dependent on agriculture for livelihood.