Chidambaram advices banks to reduce higher interest rates

Bangalore, August 1 (NAI): Union Finance Minister Palaniappan Chidambaram on Friday advised the Indian Public sector banks to reduce the burden of higher interest rates by mobilizing low cost deposits.

Speaking at a function organized by public sector Corporation Bank in Bangalore on Friday the Finance Minister asked banks to aim to make current accounts and savings accounts at least 40 per cent of the total deposits.

Talking about the Reserve Bank of India's recent initiative to contain inflation which raised its key lending rate by 50 basis points to a seven-year high of nine per cent, he said that Indian interest rates should moderate from current high levels over the next six to 12 months.

He also said that this year was a difficult year because of rising crude oil prices and commodity prices.

The Finance Minister was here to open a branch of Corporation Bank in Bangalore. y Kestur Vasuki (ANI)