Mumbai: The State Bank of India's (SBI) board is to meet on Thursday to review interest rates. SBI had raised PLR from 10.75 per cent to 11 per cent with effect from August 2.
The Bank's Chairman O P Bhatt on Wednesday said its executive committee has already ratified the decision to hike PLR rates by 0.25 per cent. "Our executive committee has already ratified the PLR hike to 11 per cent at a meeting held on August 3," he said.
Besides interest rates, the Bank's board would discuss the liquidity situation.
On the outlook for interest rates in the medium term, Bhatt said it looks very stable, both for the lending rates as well as deposit rates, and that they were not expected to go up further.
Bhatt said the liquidity condition in the banking system too looks comfortable now. On the credit offtake, he said, it seemed to be moderate this year at 25 per cent.
"Deposit mobilisation is higher this year-much higher than it was in the same period last year," he said. Bhatt added that SBI was targeting 16-17 per cent growth in deposits this year and it was attainable.
The SBI chairman said the bank would look at various ways of raising funds, but the routes it would be using have not been finalised yet. Replying a question, he said the bank's "acquisition" target in Indonesia and Kenya was "under process".
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