• search

Pressure growing on liquidity and interest rates: Purwar

Written by: Staff

Mumbai, Feb 24 (UNI) State Bank of India (SBI) Chairman A K Purwar today said there was upward pressure on interest rates and liquidity in the banking system was tight.

''We will wait for the budget and take a call, but there is a hardness in the interest rate market and liquidity pressure,'' Mr Purwar said in response to a question about any revision in interest rates.

Earlier in the week, the bank raised home loan rates by 25-75 basis points.

Cash supplies have dwindled in the past two months due to a USD 7.3 billion redemption of an expatriate deposit scheme, sluggish government spending and robust corporate demand for bank loans.

SBI was able to retain about 15 per cent of the total redemption within its various investment schemes.

Inter-bank overnight rates were dealt at about seven per cent, unchanged from the previous day's level, and above the 5.5 per cent range where they traded when funds with banks were ample, forcing banks to raise lending and deposit rates.


For Daily Alerts
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more