New Delhi, Nov. 16: ICICI Bank on Tuesday said there was pressure on interest rates following Reserve Bank of India (RBI) intervention to check inflation, and that loans likely to cost more with pick up in credit offtake.
“There is an upward bias on interest rate. How they move up... to what extent they move up and at what rate they move up... will partly depend on how credit growth rate in the system picks up,” ICICI Bank chief executive officer and managing director, Ms Chanda Kochhar, said.
The RBI had earlier this month raised repo and reverse repo rates by 25 basis points in its bid to tame inflation.
“The fact is that deposit cost have gone up and therefore as credit demand picks up there would be upward bias on interest rate,” the ICICI Bank CEO said.