The HDFC Bank has said that it believes that the borrowing numbers are more credible than the forecasts for the financial year 2012.

The lender said that the government has budgeted a strong growth in capital expenditure during the coming year. A minimum slippage of Rs 30,000 cr could be expected in borrowing”, it said.

It pointed out that yields would face pressure due to the absence of open market option (OMO) activity. The real estate interest rates in the country are expected to be within manageable levels.

Indian bond yields and swaps declined on Tuesday on indications that the central bank, the Reserve Bank of India might consider a rate cut. The 10-year benchmark bond yield was 3 basis points down on the day at 8.39 percent at time of reporting this morning. While the benchmark five-year swap rate fell 2 basis points to 7.60 percent and the one-year rate 1 basis point at 8.20 percent.

On the valuation of the Indian national currency, the bank said that the rupee faces huge pressure and would remain in near 50 per dollar.