Further rate hike will hit profitability: Kamath

Hyderabad, July 16

Any further hike in interest rates to control inflation will hit corporate profitability, according to Mr K.V. Kamath, Managing Director and Chief Executive Officer of ICICI Bank Ltd.

Responding to queries at a media conference organised by the Confederation of Indian Industry (CII) here on Wednesday, Mr Kamath, who is also President of CII, said: “Further hike in rates could be a pain for everybody.”

It was, however, for the policy makers to take a call on rate in the ensuing RBI’s Credit Policy in the last week of this month, he said adding that a ‘conservative approach’ to arrest inflation might be good as long as the inflation did not turn into a ‘triple digit figure’.

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