Morparia rules out softening of rates

ICICI Bank Joint Managing Director Kalpana Morparia today said she does not see interest rates softening. She expects interest rates to remain stable in the "near term".

Morparia said she expects consumer credit to grow by 25-30 per cent in 2006-07. "In the first quarter, consumer credit grew 28 per cent. Overall, it should grow 25-30 per cent this year (2006-07) on top of the 30 per cent growth last year," Morparia said, on the sidelines of a three-day seminar on banking organised by FICCI and Indian Banks' Association.

Neeraj, India head at Standard Chartered Bank, said interest rates have stabilised and there is a "good demand" for credit.

Citigroup India chief Sanjay Nayar said the credit demand from corporate as well as individuals has been quite high. The global growth outlook seems to be becoming benign but in India the scenario is quite active.

The lending rates could move up by 25-50 basis points over the next 18 months period. "We do not see pressure for cutting the rates," Nayar said.