KV Kamath, managing director & CEO, ICICI Bank, said interest rates are expected to come down in the next three months?or by the time the next mid-term credit policy is announced.
Speaking to reporters here on Tuesday, Kamath said interest rates have reached a level where cost to borrowers has gone up 33%, leading to a slowdown in credit off-take. The demand for funds will taper off significantly over the next few months, predicted Kamath, who is also the vice-president of CII.
He said with the sharp growth in deposit mobilisation, along with a tight liquidity position and reduced inflation, it is time now for interest rates to move down. ?Interest rates have peaked and are expected to ease in the next three months or by the time of the next mid-term monetary policy,? he said. He did not elaborate.
Earlier, talking about the huge expected shortage of quality manpower in the financial services sector, Kamath said ICICI Bank is planning to rope in schools, colleges and universities to train students for jobs in the sector. ?The financial sector is expected to create 10 million jobs, of which the insurance sector alone requires over 2 lakh people in the next five years?which is a massive task,? he said.
