Deregulation of the savings rate is likely to destabilise the interest rate structure in the country, K R Kamath, chairman and managing director, Punjab National Bank (PNB), said on Wednesday. “The savings bank interest is the anchor rate in this country. The interest rate structure in the country is based on that. If you destabilise it, the entire interest rate scenario would come under turmoil for some time,” Kamath said on the sidelines of a Ficci banking conclave He said whether this was the right time for the reform should be considered. “Along with this, we should deregulate savings bank products as well. But savings deregulation would adversely affect the lower-end customers adversely,” he said. Kamath said he expected the interest rate to come down in six months. “With the Reserve Bank of India (RBI) expecting industry growth of 18 to 20 per cent, we are confident of growing between 20 to 22 per cent (this financial year),” Kamath said.
BS
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