SBI chief hints at rate hike

Tight liquidity conditions along with the loan growth could push interest rates northwards in the coming days, said O P Bhatt, chairman, State Bank of India. HT reports

Tight liquidity conditions along with the loan growth could push interest rates northwards in the coming days, said O P Bhatt, chairman, State Bank of India.

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“Interest rates have a slightly upward bias because of the tight liquidity combined with credit offtake. So these two together may push up the interest rates,” said Bhatt, speaking on the margins of the India Economic Summit (IES) of the World Economic Forum.

Liquidity has come under pressure owing to the huge public issue of Coal India a few weeks ago, besides a surge in spending during the festival season.