CREDIT GROWTH TENTATIVE STILL, RATE HIKES UNLIKELY: BHATT

Mr. O.P. Bhatt, Chairman, State Bank of India has said that interest rates are unlikely to rise in the next few months as credit pick-up is still tentative in the banking system and yet to gain momentum. He made the comments at a curtain raiser to announce IBA's two-day Bankers' Conference (Bancon), which begins on January 11.

Mr. Bhatt observed that even if the RBI were to raise the CRR by 25-50 basis points, banks would still have enough liquidity. He has also said that SBI has been trying to depress deposit accretion and retired bulk deposits aggregating Rs.60000 crore.

According to Mr. M.D. Mallya, Chairman and Managing Director, Bank of Baroda, the bank had substantially cut down dependence on bulk deposit as one of the sources of funds. BOB has retired over Rs.20000 crore worth of bulk deposits in the last one year.

Source: http://www.thehindubusinessline.com/2010/01/09/stories/2010010951940600.htm