Bank of India's Chairman and Managing Director, M Balachandran, today said the bank was yet to take a call on hiking its prime lending rate (PLR) and a meeting in this regard would take place shortly.
"We have to maintain the balance between our cost of funds and our cost of lending. We are yet to take a decision on this front," he told reporters on the sidelines of the Bank of India tie-up meeting with UTI Mutual Fund for the latter's micro pension initiatives for Self Help Groups(SHGs).
Several public sector banks including the State Bank of India and Bank of Baroda have hiked their PLRs and lending rates across various consumer segments.
Housing finance companies like HDFC Ltd and Dewan Housing Finance Ltd (DHFL) too have joined the bandwagon and have upped their lending rates.
Without hinting at an increase, the BoI CMD maintained that a meeting to review the cost of funds will take place shortly to decide on the issue.
"If we hike the lending rates we have to balance it with a rise in deposit rates," he said.
On whether the banking industry will suffer from the spate of rate hikes, Balachandran denied any possibility of a slowdown in credit offtake.
"At BoI, there has been no dampening of credit offtake, both on the retail and corporate front," he said.
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