ICCI Bank to review interest rate policy soon: Kamath
New Delhi, Nov 3 (UNI) ICICI Bank Chairman K V Kamath today said his bank will review its interest rates policy in the next few days, after monitoring the impact on liquidity of the recent Central Bank's steps to infuse liquidity.
''We will review interest rates after watching the impact of the RBI decision on liquidity,'' Mr Kamath told reporters here.
''It is premature to consider interest rates right now, but we will review it in the next few days,'' he said.
The RBI has undertaken a series of cuts in the Cash Reserve Ratio (CRR) and repo rate recently. The Central Bank on Saturday unexpectedly cut its key lending rate by 50 basis points to 7.5 per cent and Cash Reserve requirements by 100 basis points to 5.5 per cent to infuse liquidity into the system.
Significantly, Finance Minister P Chidambaram is meeting heads of Public Sector Banks tomorrow to review the interest rate scenario and lending operations by them.
Private Sector banks may be waiting to take a cue from the meeting tomorrow.
Mr Kamath, however, said signals to banks from the Central Bank is very clear and that lending and deposit rates will react to liquidity.
Speaking
on
his
meeting
with
Prime
Minister
Manmohan
Singh
as
part
of
the
premier's
renedezvous
with
captains
of
industry,
Mr
Kamath,
who
is
also
the
CII
President,
said:
''We
have
got
an
issuance
that
the
government
and
the
industry
is
on
one
side
and
the
government
will
work
with
the
industry
to
see
that
any
challenge
that
industry
faces
will
be
alleviated.''
UNI
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