Public sector lender, Andhra Bank is most likely to raise its lending rates soon following the monetary policy released by Reserve Bank of India.
According to CMD of the bank, Andhra Bank, the net interest margin (NIM) of the bank is likely to come under slight pressure following the policy rate hike by RBI.
The bank has booked a net profit of Rs 1267 crore in the fiscal last ended while accounting a total business worth Rs 1,64,310 crore.
"We see a marginal hit in the NIM going forward. While we would follow growth trends in a sustained manner, there has been a significant increase in the cost of deposits between January and March, the lag effect of which will be seen in coming quarters. There is a case for revision of rates and we may increase our benchmark prime lending rate," Ramachandran said.