After the announcement of liberalised interest regime for savings by the RBI, the general public is curious regarding SBI's move. It has around Rs 361,000 crore as savings deposit, which has always given it a base for low-cost funds. In case this bank increases the saving interest rate across the board by 0.75 per cent, it may reduce its profits by around Rs 2,700 crore. When its profits are projected to be in the vicinity of Rs 10,000 crore during the current financial year, will it not be a risk worth taking? Will it not be in the logic of things to play in the market with resultant profits of Rs 7,300 crore (assuming correct projections) and set an example? The time has now come for the banks to sacrifice some profits and do out-of-the-box thinking.
- Anand (HBL)
