Mumbai, Jan 19: In the wake of HDFC Bank slashing interest rates on auto loans by 150 basis points, ICICI bank, country's largest private lender on Monday, Jan 19 said that interest rates might come down in the next one and a half months.
"I think in next six weeks, interest rates are expected to come down. I think interest rates would be adjusted on their own," ICICI Bank CEO and MD K V Kamath said.
Kamath also hinted on possible rate cuts and said that the banks are also looking at passing it on to the customers.
"With the lowering of borrowing cost the banks will start lending at lower cost," he said.
Reserve Bank of India (RBI) may signal softer interest rates even though it may not tinker much with key rates in the quarterly review of its annual monetary policy to be released on Jan 27.
There are reports and bankers also believe that RBI may maintain a status quo in their key rates as the central bank has already brought down CRR and short-term rates to inject Rs 3,00,00-crore liquidity into the system.
OneIndia News (With inputs from Agencies)