Limit To Lowering Interest Rates: SBI Chief

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New Delhi: SBI Chairman Rajnish Kumar on Saturday said that banks cannot lower interest rates beyond a threshold due to asset-liability mismatch issues.

“We can’t lower the interest rates without lowering the interest rate for depositors and there is a threshold below which we cannot reduce the interest rate for deposits,” he said at the FICCI’s 92nd Annual Convention, titled “India: Roadmap to a $5 Trillion Economy”.

The SBI chief also said that there is enough cash available in the banking system and it is now for the industry to take advantage of this.

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