IBA says there is no liquidity crunch in the country

Mumbai, Dec 7 (UNI) Indian Banks' Association (IBA) today made it clear that as there was no serious crunch of long-term funds or liquidity in the system and hence no need for any immediate hike in interest rates.

Talking to the media on the sidelines of a SIDBI programme here today, the IBA chairman, V P Shetty, said that there was no serious crunch for long term requirements and hence no tinkering of interest rates was required at this moment.

Replying to a media query on the impact of RBI's decision to hike repo rate on credit offtake, Mr Shetty, who is the chairman of the IDBI, which is a parent body of SIDBI, said that there had been no major change so far.

Talking about the expansion plan of his bank, he said ''Our application for adding 100 new branches is already under the process of discussion with the RBI. Also, he hinted that the IDBI bank would soon be recruiting 1000 new staff''.

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