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SBI does not see upward pressure on rates

business Updated: Jul 02, 2010 19:11 IST

Reuters
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State Bank of India does not see upward pressure on lending, deposit rates as credit growth remains neutral, a top official said on Friday, shortly after India's central bank hiked the repo and reverse repo rates by 25 basis points each.

"We don't expect upward pressure on lending, deposit rates as credit is still not picking up. We expect liquidity to improve substantially in July. I don't expect a major impact of the rate hike on government bonds and OIS on Monday ," SBI's Deputy Managing Director and Head of Treasury, Anjan Barua, told Reuters.

The central bank raised its main lending rate to 5.50 percent from 5.25 percent, and the reverse repo rate, at which it absorbs excess cash from the banking system, to 4 percent, from 3.75 percent, it said in a statement released after market hours.