Interest rates softening: SBI

State Bank of India (SBI) chairman O P Bhatt today said interest rates are showing signs of softening, and liquidity in the system is good.

"The rates are softening, but we will have to see whether it is a blip or a trend," Bhatt said on the sidelines of a banking summit organised by Federation of Indian Chamber of Commerce and Indian Banks Association in Mumbai today.

SBI would review rates after the second quarter results and Reserve Bank of India's mid-term review of the annual policy next month, Bhatt added.

The festive season has begun, and the busy season (during which people and corporates go in for purchases and hence the demand for credit) is round the corner, he said,  and added: "We  have see the whether the liquidity would remain comfortable or vanishes overnight in the busy season."

SBI has done well on all business parameters (deposit and credit) till date in the second quarter. The deposit growth is pegged at 16% for the year (2006-07) and credit would see growth of up to 25%, he added.