Interest rates near peak level: SBI chief

Hinting that interest rates may have little room left to move up, State Bank of India (SBI) Chairman O P Bhatt on Friday said rates were ruling near the peak level.

Interest rates had peaked or near the peak levels, he said, adding that they may not come down immediately. He was addressing reporters on its retail bonds issue.

The country’s largest lender is set to raise up to Rs 10,000 crore through bonds. The bank will issue series 3 lower Tier-II bonds of face value of Rs 10,000 each and series 4 lower Tier-II bonds of face value of Rs 10,000 each, aggregating Rs 1,000 crore, with an option to retain over-subscription.

The tranche 1 issue will be opened from February 21 to February 28 for subscription. These bonds are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Retail applicants will get interest at the rate of 9.75 per cent per annum on series 3 lower Tier-II bonds and 9.95 per cent in case of series 4 lower Tier-II bonds.