Corporate credit offtake hasn't softened: Kamath

"We have to see what happens in the next two quarters to really have an idea on slowing down of the pipeline of growth. We are on the growth platform. So far it appears intact," he told reporters on the sidelines of a conference organised by the Confederation of Indian Industry here on Monday.

"There is a need to revisit growth if situation worsens," he noted, adding corporate performance would hold the key.

"Because the only fact I have which I rely upon is corporate performance. Last quarter, corporate performance was not overall challenged. There were sectors which were challenged. If the corporate performance is impacted, we will take a call."

Kamath said rising inflation and commodity prices are a bugbear for the economy. "Our challenge is inflation at this point of time and commodity prices. I think what is insulating us is the huge pipeline of investment that is happening. Oil price is part of the challenge contributing to 12 per cent inflation."

In the week ended June 28, India's inflation hit an over 13-year-high of 11.89 per cent. The figure has been rising since the beginning of this calendar year. He noted that rainfall has "not been so bad" in most parts of India, adding the banking sector would have to "wait and see what happens on the agricultural front".

"Clearly consumer side is impacted. On corporate side, credit offtake is excellent. Corporate India has a pipeline of $700 bln-$750 bln investment that is being funded either through cash accruals or by banks. I see no slow down."

The head of India's largest private bank said the recent decision of the central bank to hike the cash reserve ratio has had the desired effect. On June 24, RBI increased the repo rate 50 basis points, and cash reserve ratio 50 basis points that will be effective in two stages.

"Liquidity was comfortable some time back. Successive hikes in CRR had the desired impact. The idea was to slowdown (liquidity)."

He evaded questions on interest rates and inflation forecasts saying he does not speculate.