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ICICI Bank hopeful of single-digit interest rates

May 05, 2009 16:30 IST
Hinting at easing of borrowing costs for retail and corporate customers, ICICI Bank's new chief Chanda Kochhar has expressed hope that interest rates could fall to single-digit level in the coming months.

"I should hope for that because that is going to be good for the economy," Kochhar told PTI in an interview when asked whether she foresees single-digit interest rates by middle of this year as forecast by her predecessor K V Kamath.

Kochhar, who assumed office of ICICI Bank's managing director and CEO this month, said there was room for further correction in interest rates.

"I feel that some more correction can take place in interest rates, because given where inflation is and given the comfortable liquidity position, I think a little more correction can take place," Kochhar said.

ICICI Bank was the first bank to cut lending and deposit rates after the central bank slashed its key short-term policy rates on April 21.

The same day, ICICI Bank reduced the benchmark advance rate by 50 basis points to 16.25 per cent, while the deposit rates were cut by 25-50 basis points across maturities.

Asked whether ICICI Bank was mulling over further rate cuts, Kochhar said that its rate would "move as per how it moves for whole banking system actually".

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