Lending rates to remain stable in next six months: SBI

NEW DELHI: The country's largest lender, State Bank of India, today said that banks' lending rates are expected to remain stable in the next five-six months as credit pick-up is still muted.

"Lending rates are unlikely to move up in the next five- six months," SBI Chairman O P Bhatt said on the sidelines of an event organised by AIMA here.

This is because credit offtake is still muted and there is enough liquidity in the system, he said.

Home loan rates would remain stable for some time, he added.

However, there is movement on deposit rates side. It has already started moving up, he said, adding a couple of banks have already increased their deposit rates.

SBI is unlikely to increase the interest rates for its depositors in the near future even though some banks like IDBI Bank and HDFC Bank have hiked deposit rates post the RBI's third quarterly review of credit policy on January 29.

There is nothing as far as deposit rates are concerned at the moment, he said.

Asked if the daily calculation of interest rate on savings account from April will have some implications, Bhatt said, there could be difference of 60 basis points once the bank shift to new model.