SBI chairman assures drop in interest rates

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India Money
New Delhi, Aug 28: Media reports revealed that OP Bhatt, chairman of State Bank of India (SBI) expected the forthcoming months to witness a drop in interest rates.

"In the next 4-6 months, I do not see interest rates going up. Either, they will remain stable or may even drop," Bhatt told reporters after Prime Minister Manmohan Singh awarded him for excellence in financing small and medium enterprises.

Bhatt said that due to the presence of ample liquidity, different banks are offering "all kinds of schemes on specific kinds of products, which are very competitive."

Central Bank of India chairman and managing director S Sridhar echoed the same view.

“In the short-term, interest rates would depend on liquidity, which was enough in the system," Sridhar said.

The Reserve Bank had not changed the benchmark rates in its Jul 2009 credit policy.

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