Bankers to wait till RBI policy before taking call on rates
Bankers on Thursday said they would assess the liquidity situation and wait till RBI's monetary policy before taking any decision on interest rates.
By PTI |
MUMBAI: Bankers on Thursday said they would assess the liquidity situation and wait till Reserve Bank's monetary policy before taking any decision on interest rates, even though the central bank today hiked CRR to 8 per cent to contain inflation.
The 0.5 per cent hike in CRR is widely expected to push up lending rates across all major portfolios by upto 0.25-0.5 per cent and many bankers have started evaluating their liquidity positions prior to hardening their rates.
Indian Banks Association's Chief Executive, H N Sinor, said banks would be adopting a `wait and watch' approach till the April 29 monetary policy before deciding on the course of their interest rates.
"The hike was expected and will help to rein in inflation....banks will wait and watch before deciding on their move (on interest rates)," Sinor said.
HDFC Chairman, Deepak Parekh, said "with inflation at a very high level, there was no option but to hike CRR..It was an expected move."
He said that HDFC has not yet taken a call on its interest rates.
ICICI Bank's Executive Director, V Vaidyanathan, also said the lender would wait till the annual policy to understand the full impact of the CRR hike before taking any decision on its interest rates.
The 0.5 per cent hike in CRR is widely expected to push up lending rates across all major portfolios by upto 0.25-0.5 per cent and many bankers have started evaluating their liquidity positions prior to hardening their rates.
Indian Banks Association's Chief Executive, H N Sinor, said banks would be adopting a `wait and watch' approach till the April 29 monetary policy before deciding on the course of their interest rates.
"The hike was expected and will help to rein in inflation....banks will wait and watch before deciding on their move (on interest rates)," Sinor said.
HDFC Chairman, Deepak Parekh, said "with inflation at a very high level, there was no option but to hike CRR..It was an expected move."
He said that HDFC has not yet taken a call on its interest rates.
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ICICI Bank's Executive Director, V Vaidyanathan, also said the lender would wait till the annual policy to understand the full impact of the CRR hike before taking any decision on its interest rates.
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