Interest rate war to push up cost of deposits for banks

Top bankers here have said the rate war among banks, that has pushed up interests on deposits to as much as 9 and 9.5 per cent, have increased the cost of deposits for lenders.

Anil Khandelwal, Chairman and Managing Director, Bank of Baroda, said higher rates could increase the cost of deposits for banks by 1 to 2 percentage points.

The cost of deposit for many banks worked out to about 4.5/5 per cent last year.

Read more at The Economic Times