Demonetisation effect: loan interest rates might go southwards
Mumbai: Two banks, one in the public sector and the other in private sector, have made a clear hint of lowering the rates for interest for loans in different categories. These bank attributed it to demonetisation of high denomination currency notes which has considerably improved their cash book positions. These banks are State Bank of India and Axis bank.
The state Bank of India was the first to give indication to this effect which has been now joined by the private bank (Axis). The SBI hinted at this possibility just two days after the demonetisation which saw deposits to the bank rising astronomically.
A retail banking official of the Axis bank said on Monday that deposits in both saving and current accounts have gone up considerably. This may lead to lowering down of interest rates.
These indications have provided much needed relief to customers who have faced difficulties in cash withdrawal following cancellation of old currency notes of Rs 500 and Rs 1000.