Liquidity situation is getting better for the banking sector although it has not completely revitalized, according to a senior official of Axis Bank. The official said, the improving position of liquidity signifies that further interference is unlikely on behalf of the banking controller, RBI in the monetary policy review to be held on September 16.
Shikha Sharma, MD, and CEO of Axis Bank said, “It’s not as if credit is picking up with huge momentum. Liquidity is better but still not in excess. I think it’s a well-managed liquidity situation. So, we actually don’t see a lot of case for much intervention at this point in time”.
She further elaborated, “But I am sure regulators are going to watch statistics regularly and closer to the date they can take a call about what needs to be done. At this point in time, I think the directions are not clear”.
Discussing the topic if the bank is entertaining any plans to increase base rates, Sharma said that it is a tough situation to be taken in this respect.
She also said, “So we are watching the markets on daily basis. The liquidity situation and the credit situation is what’s going to determine what happens to interest rates. We will keep watching them…”.
Get the best deals on loan offers