Home, auto loans to get costlier soon: SBI chief
16 November 2010
State Bank of India (SBI) chairman O P Bhatt on Monday said that tight money conditions combined with high credit growth is likely to push up interest rates on auto and home loans in the coming months.
''Interest rates have a slightly upward bias due to tight liquidity combined with more credit offtake, which is going to take place.
So these two together may push up interest rates,'' Bhatt told reporters on the sidelines of the India Economic Summit, organised by the World Economic Forum and the Confederation of Indian Industry in New Delhi.
Liquidity has come under pressure as a lot of money was diverted to the huge public issue of Coal India Ltd (CIL) a few weeks ago and there was a surge in spending during the festival season.
Bhatt also said the roadshow for the euro bond that SBI plans to float is likely to begin next week.
"We are expecting to raise a benchmark- size five-year euro bond as we've a significant pipeline of existing customers who require euros," Bhatt had said last week. "The nature of the issue is such that details on the quantum of bonds cannot be divulged," he added.