The country’s biggest private bank, ICICI Bank, said it anticipates loan rates to increase after September as credit offtake is expected to speed up in the 2nd half of the present financial year.
ICICI Bank CEO and MD Chanda Kochhar said, “My belief is the demand for liquidity will increase substantially in the second half of this year. So, you would see some gradual increase in interest rate on the lending side over the next one year”.
Talking about the initial public offering (IPO) intentions of the bank’s associate ICICI Securities, she said, “There is nothing in the offing. Nothing in this fiscal.”
About base rate, Kochhar said that it has already been declared and loan rates are being realigned with the base rate.
“Immediately you will not see a change in effective rate just because of the announcement of base rate,” she said.
Talking about the present liquidity condition, she said, “It is sufficient.”
She said, “As I am seeing a lot of economic activity coming back there would be a lot of credit demand in the second half that is when I think some of the excess liquidity that is there will go out”.
About inflation, she said the economy must control it as it is slowly getting expanded and is not just associated with food but has affected other sectors too.