Bankers expressed their concern over sluggish growth in the consumer durables and the textile sectors when they met Reserve Bank of India officials on Thursday as part of a customary exercise ahead of the third quarter credit and monetary review undertaken by the central banker. Talking to FE after the RBI meeting, HN Sinor, CEO, Indian Banks? Association (IBA) that led the delegation, said that the bankers suggested that a stable interest rate regime was the need the hour if the country?s growth rate was to be maintained at the rate of 8.5%-9%.
Among other topics discussed with RBI officials including deputy governors Rakesh Mohan and V Leeladhar, were liquidity management and its impact on exchange rates. The delegation also discussed the repercussions of low interest rates at a time when domestic oil companies were absorbing the impact of soaring global crude prices. Prominent bankers at the meeting were OP Bhatt, chairman, State Bank of India, MBN Rao, CMD, Canara Bank and the India CEO of Bank of America, Vishwavir Ahuja. ?We discussed if the interest rate could be softened at this point of time,? OP Bhatt said.? We are of the view that the interest rate must remain stable and the credit growth should be around 20-22% by March,? added Sinor. The RBI will unveil the credit and monetary review policy for the third quarter on January 30.
