Mangalore, Mr B. Sambamurthy, Chairman and Managing Director of Corporation Bank, said that the RBI Governor is emphasising on two points in the third quarter review of annual monetary policy for 2007-08.
The first point being credit quality. “The RBI Governor talks of credit quality in the present kind of sub-prime crisis in most of the developed countries,” he said.
Second, significant point is that deposit growth has outpaced credit growth by a significant margin as compared to last year. “As far as we are concerned, the credit growth in other sectors is reasonably okay. But there is no increase insofar the real estate is concerned,” he said.
Asked if there is a plan for rate revision, he said there is no immediate plan for rate cut as such.
Mr Ananthakrishna, Chairman and Chief Executive Officer of Karnataka Bank Ltd, said: “If at all the people expected any rate cut on account of Fed rate cut, this policy shows that we are moving towards stability.”
