SBI not to hike interest rates immediately: Bhat
A day after the Reserve Bank raised its short terms lending and borrowing rates, the country’s largest lender SBI on Friday said that it is not likely to hike its interest rates before 3-6 months.
“I am not seeing the possibility of any immediate change in interest rates,” SBI Chairman O P Bhatt told reporters here.
He, however, said the possibility of interest rates hike is there in 3-6 months if economic conditions change.
Without specifying for the SBI, Bhatt said base rate, which is the floor for lending rates, may rise by 25 basis points in case economic conditions change.
Consequently, lending rates may also increase as they are directly linked to base rates that can be changed by banks only once in three months.
RBI had on Thursday raised short term lending (repo) rate by 25 basis points to 6 per cent and borrowing (reverse repo) rate by 50 basis points to five per cent to tackle rising inflation.
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