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Interest rates may stabilise in three months: bank chairman

Staff Correspondent

‘Lending rates may not go up’

Corporation bank has 945 branches across
the country
Its overall growth during the year has been
30 per cent higher than the previous year

Belgaum: Interest rates in various banks could stabilise in the next two to three months, even as the Centre has started preparing proposals for the financial budget for the next financial year 2007-08.

Replying to a question at a press conference here on Saturday, Corporation Bank Chairman B. Sambamurthy said he did not see the possibility of lending rates going up immediately.

Oldest bank

He said the 102-year-old Corporation Bank, the oldest in the country, had made a humble beginning and developed business of Rs. 37 crore in the first 97 years. It doubled the business in the subsequent three years.

Today, the bank’s business has crossed the Rs.76,000-crore mark, which is a direct reflection of a vibrant and growing Indian banking system and progressive reforms brought in by Reserve Bank of India. The bank has 945 branches across the country and with a credit-deposit ration of 80 per cent, it has already touched a turnover of Rs.1,000 crore during the current financial year and hopes to touch Rs. 1,500 crore by the end of 2007-08.

Zone growth

Mr. Sambamurthy, who addressed a customers’ meet earlier in the day, announced that the Belgaum zone, covering seven districts, including Bagalkot, Bidar and Raichur, was the fastest growing zone. During the current financial year, the zone has registered deposits of Rs. 541 crore and advances to the tune of Rs. 4,000 crore, including Rs. 165 crore in agriculture advances and Rs. 258 crore in private sector advances. The overall growth recorded by the bank during the year was 30 per cent higher than the previous year’s performance.

Online broking

Mr. Sambamurthy said the bank was studying the feasibility of opening an Online Broking facility in Belgaum, besides focussing on potential customers such as doctors/health experts and builders.

Meet soon

A meet with the two potentially growing section of customers would be held soon, he said.

New focus

That apart, there was good potential in the horticulture sector in Bagalkot and rice mills in Raichur, the two areas where the bank would like to focus its attention on, he added.

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