(As well as) 50% of our portfolio is linked to the report rate and these loans will immediately get. Our interest income and them will therefore be influenced by the CEO and CEO of IOB Ajay Kumar Srivastava. | Photo Credit: Special Arrangement
The state creditor of the Indian Oversteas Bank (IOB) has taken various measures to balance the impact on its net interest margin (NI) at the report rates of reducing the Bank of India (RBI), said its CEO and CEO Ajay Kumar Srivastava.
“Over the last four months, a total reduction in 1% repo has been reduced.
“One of the main sources of low -cost funds is common accounts and savings accounts (CASA). In order to bring the bank to our fold, new customers also bring new branches in non -bank areas or where our presence is not available.
“The bank adopted a conscious decision to reduce volume or wholesale deposits to 5-10% of the total deposits. In addition, mass deposits are only taken in short-term buckets, ensuring that the bank is not locked for long-term interest in the long term,” he said.
“The rates of retail deadlines have changed only after the RBI announcement of a reduction in 50 basic points during this month, because the bank cannot afford to offer high rates in retail deadlines and low loans.
IOB also emphasizes that it will increase its marginal cost of renting a fund based on funds (MCLR) Loan portfolio, which will help the bank to reduce the calls released due to a sudden change in RBI reposition, he said.
However, Mr. Srivastava pointed out that according to the regulatory regulation, the bank/ MSME loan is associated with the external lending rate based on the benchmark (EBLR), which is associated with the repo rate.
He also said that the complete benefits of the ratio of cash reserves would only be visible from the fourth quarter when the money would enter the system.
Mr. Srivastava said that it is expected that the growth of loans IOB will continue in the financial year of 2026, as last year.
“Our strategy for the current financial year is to achieve a growth of deposits approximately 12% to 13% compared to 9.11% last year,” he added.
Published – June 21, 2025 20:09
