After SBI, Bank of India also considering reduction in savings rate

Coimbatore: Bank of India has said it is considering reducing the Savings Bank account rate on the lines of State Bank of India and also the interest rate on deposits.

"A cut on both the SB rate and interest on deposits are on the cards. Savings Bank account rate cut may not happen immediately but it is under consideration," BOI Executive Director R S Sankaranarayana, told reporters here.

With Rs 88 crore profit in the first quarter of this fiscal, the Bank expected to do good business this year, he said.

Sankaranarayanan, who was here to take part in an Exporters' Meet last night, said that the bank was looking for quality business through its good customers to get newer customers.

On export credit, he said that it stood at 13 per cent of the bank's total advance of Rs. 3.85 lakh crore.

Stating that BOI would lay focus on the retail, rural, housing and SME sectors, the official said that thrust would also be laid on recovering and controlling slippages.

To a question on base rate, Shankaranarayanan said the bank's one year MCLR (Marginal Cost of funds-based Lending Rate) was 8.40 per cent and it had effected 135 BPs (Basis Point) recently.

Asked about GST preparedness, he said the bank has engaged a consultant and the bank's systems were in tune with GST requirements.

"Test runs have been successful, but the new tax regime is evolving and all banks are gearing up to comply with the norms," Shankaranarayanan said.