SBI likely to hike rates in 15 days

Mumbai: A day after the Reserve Bank raised key policy rates, country's largest lender State Bank of India's Chairman Pratip Chaudhuri today said there will be a hike in its interest rates in the next 15 days.

"In another 15 days we will if the input prices go up, the output has to go up," Chaudhuri said.

When asked about the likely quantum of the rate hike and if it will be at par with RBI's 25 basis point hike, he said, it will be "roughly" the same.

With an eye on taming high inflation, which stood at 9.74 per cent for August, RBI yesterday hiked its short term lending rate by 25 basis points to 8.25 per cent.

Indian Overseas Bank Chairman and Managing Director M Narendra had also said yesterday that banks needed to pass on the hike to customers as their cost of funds has gone up. He had added "banks would wait till the month-end before taking a call on an interest rate hike."

Punjab and Sind Bank Executive Director P K Anand had said the banks would maintain the current rates at least for the next 15 days and take a call on revising them after ascertaining credit demand.

Source: Financial Express