The State Bank of India, the country's largest lender, seems set to lower interest rates further in the coming fiscal. "There is a possibility of downward revision in lending as well as deposit rates in the financial year,'' SBI chairman O P Bhatt told reporters in Jamshedpur on Sunday.
''There are enough indicators available on this,'' Bhatt said on the sidelines of the convocation ceremony of the Xavier's Labour Relations Institute, He added that the timing and extent of the rate cuts would be decided when required by the asset-liability committee of the bank.
Asked about growth prospects in credit demand during the next financial year, he said it would depend on various factors, including the prevailing world economic scenario, the monsoon and the policies of the new government.
Bhatt also said there was enough liquidity in the market, though there was a significant pressure on interest margins. ''Because of the various schemes we have introduced in the last two to three years, there has been an increase in the money flow into SBI, which is evident from our rising market share,'' he said.
SBI, he said, was awash with liquidity and did not plan to go in for further capital expansion. The bank, in fact, recorded Rs1,000 crore of deposits everyday in October-November, he added.
Later, inaugurating the bank's 1,000th branch at Dhatkidih in the city, Bhatt said he was surprised at the high deposit figure. ''No other bank has such a per-day record and the figure is increasing.''
SBI has 43 per cent market share and the market cap of the bank was more than that of Citibank, he said.