SBI hints at rate cuts in next financial year

SBI on Saturday hinted at further interest rate cuts in the new financial year.

Written by Agencies | Jamshedpur | Published:March 29, 2009 7:18 pm

SBI on Saturday hinted at further interest rate cuts in the new financial year due to several factors,including credit growth being below expectations.

“There is a possibility of a downward revision in lending as well as deposit rates in the financial year. But the (extent) of the cut and time have to be decided,” SBI Chairman O P Bhatt told reporters.

The asset-liability committee of SBI would take a decision in this regard when required,he added.

Admitting that there was significant pressure on interest margins,he said he was not sure whether the lower credit growth this quarter was because of a lack of demand or for higher interest rates.

To a query on growth in credit demand during the next financial year,Bhatt said it would depend on various factors including the prevailing world economic scenario,the monsoons and the policies of the new government.

He was in the city to participate in the 53rd Convocation of the XLRI School of Business and Human Resources.

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