ICICI Bank yet to think on interest rate cut

Mumbai, Feb 5: Private sector lender ICICI Bank has not yet decided on an interest rate cut as it is still assessing the demand and supply position of credit. Speaking to mediapersons on the sidelines of the fifth CFO Summit 2008, organised by the Confederation of Indian Industries (CII) here today, ICICI Bank Managing Director and Chairman K V Kamat said ''It would be better to wait and watch for some time. The rates in the last quarter normally tend to increase," he said, ''It would be unwise to say how rates will move in the next six weeks and at the same time we also need to assess the demand-supply gap.''

Expressing his acceptance on slow-down in the Bank's credit offtake in the current fiscal, Mr Kamat said there has been a slow-down in automobile and mortgage portfolios. In the mortgage segment, the impact was due to steep rise in real estate prices during the period, which in a way crushed the demand. However, there was no serious impact across the board, he asserted. On the issue of the Bank's holding company, Mr Kamat said it will wait for the new draft policy from the Reserve Bank before taking any decision in this regard.

Earlier, in his inaugural speech at the summit, he said Indian economy is expected to continue the current growth momentum and will possibly attain a growth in double-digits in the next ten years.

UNI