No decision on interest rates in panic: ICICI

"We have not taken any decision...We would continue to look at it on daily basis. Our liquidity situation is comfortable. Therefore, we would not take steps in panic," ICICI Bank Joint Managing Director Chanda Kochhar said.     

The statement assumes significance as Reserve Bank yesterday increased short term lending rate (repo rate) and the mandatory cash deposits that banks have to keep with the Central Bank (CRR) by 50 basis points each.     

 

The RBI's move is a signal that liquidity would tighten further and therefore interest rates would go up. Interest rate in general would rise, she said.     

However, she said, "I think we would not see steep and continuous rise in interest rates, despite the fact that there is clearly northward bias".     

On whether ICICI Bank would hike interest rates," As of now, we have not taken any stand," she said, adding, if hike comes, it would be across all the products and all the segment.     

Net Interest Margin (NIM) would not get adversely impacted because rate hike if it is effected would be on the both sides of the balance sheet (both deposit and lending rate would go up).     

NIM is expected to remain intact in the current fiscal, she added.