Tightening liquidity

Updated: Dec 31 2006, 07:25am hrs
Some of the trends emerging in the New Year are tightening of liquidity, higher interest rates and strong efforts to reduce inflation and credit growth.

In my wish list for the New Year is the government looking for faster capital account convertibility and freeing up Indian rupee at a faster rate. Year 2006 has seen growth in corporate profitability. It will be very hard to replicate same trends that we saw in the year 2006. The year that passes us by also saw a large extensive labour shortage not only in the banking industry but in all industries and I hope this problem will ease up in the next year.

The author is managing director & CEO, Development Credit Bank