No pressure on interest rates, says HSBC | india | Hindustan Times
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No pressure on interest rates, says HSBC

HSBC has not taken any decision on hiking interest rates, despite several commercial banks in the country raising lending rates starting this month.

india Updated: May 04, 2006 16:02 IST

Multinational bank HSBC said on Thursday that it has not taken any decision on hiking interest rates, despite several commercial banks in the country raising lending rates starting this month.

HSBC country head and CEO Naina Lal Kidwai said on Thursday that there was no upward pressure on interest rates in the economy because of ample liquidity in the system.

So far as HSBC India is concerned, it has not taken any decision on revising interest rates on the lines of some major PSU banks, he told reporters on the sidelines of an Asian Development Bank seminar.

The country's largest commercial bank, State Bank of India and other leading banks, including Punjab National Bank, Bank of Baroda and Oriental Bank of Commerce have revised upwards, their benchmark prime lending rates as also on home loans, rates of which went up by 0.25-0.50 per cent.

The hike in rates followed the Reserve Bank increasing risk provisioning from 0.40 per cent to one per cent for housing loans above Rs 20 lakh and hiking risk weightage to the real estate sector.

Commercial banks had also cited the rising cost of funds for hiking lending rates, even as many of them raised interest on deposits -- a source of cheaper funds for banks to lend.