SBI will not raise lending rates, says Bhatt
20 March 2010
The country's largest lender, the State Bank of India (SBI) today said it has no plans to hike lending rates immediately, and would wait for further signals from the Reserve Bank of India (RBI) to arrive at any decision.
Responding to reporters question on RBI's hike in repo and reverse repo rates, SBI chairman OP Bhatt told reporters that the bank has no plan to hike its lending rates immediately.
''We will wait till the April policy (of the RBI) to take a call (on hiking lending rates), he added.
He noted that there was sufficient liquidity in the banking system currently.
The RBI had on Friday raised repo and reverse repo rates (short-term lending and borrowing rates) by 0.25 percent each to 5 perc ent and 3.75 per cent, respectively (See: RBI hikes repo, reverse repo rates by 25 bps).
Bhatt said the central bank is expected to tighten its monetary stance further in the 2010-11 annual policy next month.
"Further monetary tightening is expected in the April policy," Bhatt said.