State Bank of India chairman Arundhati Bhattacharya expects banks to ease interest rates once deposits register a growth on the back of a good monsoon and 7th Pay Commission.
“Till last year, there was a very sharp liquidity squeeze and, as a result, bond yields did not fall. This year, the Central bank has changed its stance and so the bond yields are also falling. So we also have a little upside in the treasury. All of this will help bring down interest rates,” Bhattacharya said after inaugurating SBI’s IBU at GIFT City campus here Monday.
Bhattacharya said the 7th Pay Commission and a good monsoon will help boost deposits and thus create favourable circumstances for banks to cut rates.
In another announcement, she said the SBI will invest Rs 200 crore to build commercial and residential facilities at GIFT City, which includes a 14-storied tower that will house the local head office, 180 apartment for employees and seven bungalows for the top management.
“It was time for us to shift,” said Bhattacharya who, along with Gujarat Chief Minister Vijay Rupani, laid the foundation stone of the commercial tower that will be spread over 2 lakh sq ft of built up area at a cost of Rs 100 crore.