Mumbai: The surge in rupee value and excess inflows were the main challenges to the Indian economy, which has sustained its growth and is expected to grow at current rates in the medium term, ICICI Bank managing director and CEO K. V. Kamath said on 22 October.
Kamath said regulators were trying to stem the surge in rupee value and excess inflows using multiple tools. “The regulation on participatory notes (P-Notes) is one among the many tools from the regulators to check inflows, which is a concern to the economy,” Kamath told reporters on the sidelines of a CII-organised seminar.
“I think a growth of around 10% will be sustained in the next 10-15 years. We have come through various challenges like inflation and ’overheating’. But growth has been sustained,” he said.
Kamath, however, added a slowdown was visible in certain sectors and a more vivid picture could be obtained only after seeing the financial results of corporates in the second quarter.
On the issue of interest rates, Kamath said ICICI Bank would wait for the ensuing mid-term policy, due on 30 October, before taking any decision.
“We will wait for the monetary policy before taking any decision,” he said, adding he was not for “any speculation on a hike in policy rates from the banking regulator including in the CRR.”