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NEW DELHI, NOV 8: "Soft interest rate regime is over. I think the interest rates should stabilise at the present level," Punjab National Bank chairman SS Kohli told reporters in New Delhi.
Liquidity was being squeezed out on the back of growth in credit, he said, apparently referring to the monetary measures to suck out excess liquidity in the market to tame inflation.
Inflation has remained over seven per cent after peaking at 8.33 mainly due to surging global crude oil prices, which forced the government and the RBI to take fiscal and monetary measures to moderate the price rise.
On the merger of ailing financial institution IFCI with Punjab National Bank, he said, "After giving the approval for the merger of IFCI, no major progress has been made".
He said investment banker SBI Capital Markets Ltd is likely to submit a report on the merger issue by the end of this year. |