Canara Bank, the country's fourth largest public sector lender, today said it will take

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a view on slashing interest rates by the end of this month.

"Rates are going southward. Rates are expected to come down," Canara Bank Chairman and Managing Director A C Mahajan told reporters here.

Asset Liability Committee (ALCO) is meeting at the end of this month, he said, adding, "the bank will take appropriate decision."

However, he remained non-committal on the quantum of the revision.

Unless cost of funds come down and yield on advances moderates, the lending rates could not ease further, he said.

The bank has already reduced Prime Lending Rate (PLR) to 12 per cent effective April, he said.

"We are paying interest rates according to the needs of the bank, liquidity in the market and also to ensure that the bank always remains liquid," he added.

Yesterday, State Bank of India, the country's largest lender, reduced deposit rates across all maturities by 0.25 per cent.