SBI expects stable interest rates till October

State-Bank-IndiaThe country's largest public sector lender, the State Bank of India (SBI) ruled out any possibility of rise in interest rates till the end of festival months of October or November, despite huge borrowing program announced by the Government of India for the current financial year.

SBI Chairman O P Bhatt, speaking at the inauguration of a new bank branch said: "We don't see the rates rising till Diwali. On the contrary, rates may drop by 25 to 50 basis points by then."

It was also pointed out by the Reserve Bank of India that the government's mega borrowing plans may lower the chances of decline in interest rates.

However, Union Finance Secretary Ashok Chawla had out rightly allayed the fears of rise in interest rates under the mega borrowing plans of the government.

Expressing satisfaction over amount of capital reserved with the bank, Mr. Bhatt said that the bank is not going for any issue at the moment to raise capital.

Mr. Bhatt added: "Our capital adequacy ratio stands at 14.25 per cent. Hence, we do not need money urgently."