SBI says won’t hike lending rates now

SBI says won’t hike lending rates now

Mumbai: The country’s largest lender SBI on Saturday said that it has no plans to hike lending rates immediately, and would wait for further signals from the Reserve Bank of India (RBI) to arrive at any decision.

“There is no plan to hike our lending rates immediately. We will wait till the April policy (of the RBI to take a call (on hiking lending rates," SBI chairman OP Bhatt told reporters in Mumbai.

He noted that there was sufficient liquidity in the banking system currently.

The RBI on Friday raised repo and reverse repo rates (short-term lending and borrowing rates) by 0.25% each to 5% and 3.75%, respectively.

Bhatt also said, “further monetary tightening is expected in the April policy."

Commenting on SBI’s credit growth, Bhatt said the bank has targeted a credit growth of 20% in the next financial year on the back of improving demand.