Worst in economy over, things beginning to improve: O P Bhatt

The worst in the economy is over with data indicating that the situation is improving, State Bank of IndiaChairman O P Bhatt said today.

"The worst in the economy is over. Economic data indicate things are better," SBI  Chairman O P Bhatt told reporters after bankers met Reserve Bank Governor D Subbarao here.

On the RBI cutting both the repo and reverse repo rates by 0.25 percentage points each, Bhatt said that the apex bank had sent a clear signal that interest rates should ease.

"It (the RBI rate cuts) is a very clear-cut signal that interest rates should ease," he said.

Different banks would respond differently to the rate cuts, he said, when asked whether he expected an industry-wide reduction in lending rates.

State Bank would take a decision on rates only after a meeting of its asset-liability committee (ALCO) on the issue, he said.

According to Bhatt, the non-performing assets (NPA) position in the industry was not unmanageable.

The premier public sector lender expects both its credit and deposit growth to be 25 per cent during this fiscal.

"We will grow higher than the industry," Bhatt said.