Lending rates may go up 25-50 bps:Citi

Lending rates may go up by 25-50 basis points in the medium term, Sanjay Nayar, CEO (India) of Citigroup, said today.

He added that the global outlook appeared benign with oil prices subsiding while credit offtake remains strong in both corporate and retail sectors.

"A lot of it depends on both credit and deposit demands. There is an upward bias, and it can easily go up by 25-50 basis points," Nayar said.

"The demand is strong across all sectors - corporate, infrastructure, small and medium enterprise and personal loans."

Nayar said that Citigroup had no plans to fund special economic zones (SEZ) although it may considered if the government policy in this regard was clear. He denied that dollar funds were coming for SEZ projects in India.