The largest private sector lender ICICI Bank today said it expects upward pressure on interest rates from the second quarter of the next fiscal, as investment activities will be on an upswing from that time onwards.
"Clearly, we see no immediate pressure on interest rates. But we will see upward pressure on interest rates--not from the beginning of the next fiscal, but I would say, from the second quarter of the next fiscal," ICICI Bank chief executive officer and managing director Chanda Kochhar told reporters on the sidelines of the Diamond Jubilee celebrations of the PTI here.
Meanwhile, ICICI Bank chairman KV Kamath, however, said he expects interest rates to go up only towards of the end of this year.
"My own assessment is that liquidity is so deep, economic activity is so robust that towards the end of this year we will start to see liquidity starting to come down and at that time we will have to watch interest rates. We will have to watch liquidity situation then," Kamath said on the same occasion.
"But for the first nine months, I don't think there is real pressure (on interest rates)," he said, adding, "I think liquidity has to come down to provide an upward push to interest rates. So, till then nothing will happen."