Exposure to real estate sector
is around Rs. 6,500 crore
‘Impact of global crisis on smaller
players will be more’
KOLKATA: UCO Bank is set to reduce its prime lending rate by around 100 basis points from January, Chairman and Managing Director Subodh Kumar Goel indicated here on Tuesday.
Participating in an interactive session on ‘Global financial meltdown: impact on the Indian economy’, organised by the Merchants’ Chamber of Commerce (MCC), he said that while the bank’s board would make the final decision on December 26, it proposed “to bring in a reduced interest rate regime on its lending and deposit rates from January 1, 2009”.
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To a question on the rates for deposits, Mr. Goel said that while a reduction was in order, the rates would move in tandem with the inflation rate, which has now been around 8 per cent. “It is time to reduce deposit rates and lending rates will follow that”. He, however, said that lending rates could not be in the region of 2-3 per cent as was the trend overseas, since it was linked to inflation.
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Mr. Goel said that following the reduction in home loan rates, the portfolio should see good growth. The bank’s exposure to the real estate sector was around Rs. 6,500 crore, he said.
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