Interest rates for the short- to medium-term lending are not likely to come down for the time being, said T S Bhattacharyya, managing director, State Bank of India."Resources for long-term lending are growing very slowly. In addition, the cost of funds is also on the rise. So, there is no likelihood of interest rate easing out for the short- and medium-term loans as of now,"Bhattacharyya said.While talking with the media on the sidelines of a seminar organised by the Confederation of Indian Industry (CII), Bhattacharyya also added that raising funds through deposits from non-resident Indians is also slowing down due to the appreciation of the rupee against the dollar."The lack of resource for long-term lending is acting as the constraint against lending rates," he said.
