'Increase in lending, deposit rates unlikely'

Mumbai, Aug 4: Amidst debates on the impact of CRR hike on lending and deposit rates, SBI chairman O P Bhatt today ruled out any hike in rates, saying the hike in CRR is nominal.

''I don't think there will be any hike in deposit rates nor in lending rates,'' said Mr Bhatt while talking to reporters here.

The Reserve Bank had revised the CRR by 50 basis points, that means by 0.5 per cent, to 7.00 per cent, in its quarterly policy review on July 31.

However, according to industry sources, the real impact of the hike in CRR rates is expected to come from Monday, when the revision will become effective.

Mr Bhatt said the hike in reserve rates has come nominal and will have lesser impact on the industry, with the cost of increase on deposits coming around 0.05 per cent.

The apex bank, in the quarterly review, had also withdrawn the ceiling of Rs 3,000 crore on daily reverse repo window with a view to suck out the excess cash in market.

UNI