Banks say a firm no to raising retail loan rates

Mumbai, Nov 21 | Updated: Nov 22 2005, 06:49am hrs
Though the union finance minister P Chidambaram had left the issue of hiking the retail interest rates to the discretion of the banks, the banking community has given a firm thumbs down to any such move.

ICICI Bank managing director and chief executive officer KV Kamath said: The bank is not planning to revise the interest rates on retail portfolio for the medium term. There is sufficient liquidity in the market, and inflation is under control.

K Cherian Varghese, chairman & managing director, Union Bank of India said: We are not jumping the gun. We are not hiking interest rates in the retail sector.

Agreeing with Mr Varghese, AC Mahajan, executive director, Bank of Baroda said There is enough liquidity in the system, which is also evident from the Rs 65,000 crore lying in the market stabilization fund of the Reserve Bank of India. We are not going to hike the interest rates in the retail sector.

On the same lines, M Balachandran, chairman & managing director, Bank of India (BoI) said, In the immediate future, I do not think we would hike the interest rate in the retail sector.