Interest rates likely to move up later this year: Kidwai

MUMBAI: An expected recovery in the bank credit offtake in the next few months may push up interest rates in the later part of the current fiscal, a top foreign banker on Thursday said.

"When the credit offtake picks up (in the next few months), interest rates can go up," HSBC India Head, Naina Lal Kidwai told reporters here.

Sectors which are primarily not dependent on exports and driven by domestic demand, are likely to show revival in the months ahead and may attract more investments, Kidwai said.

HSBC, which has been reducing its dependence on unsecured consumer loans in the face of difficult market conditions, has seen a healthy growth in the secured loan portfolio, Kidwai said.

The bank did not have any plans to enter into the vehicle finance business and will focus more on the NRI segment in the period ahead, she said.

The lender, which acquired leading Indian brokerage IL&FS Investsmart in late last year by purchasing a 93.86 per cent stake, today rebranded the brokerage as HSBC InvestDirect.