MD Mallya, CMD of Bank of Baroda says the Reserve Bank policy has been largely in-line with expectations.
After raising key policy rates 13 times since March 2010, RBI on Friday left interest rates unchanged, signalling the end of the monetary tightening cycle in the mid-quarter monetary policy review. It said further rate rises may not be warranted and that future policy actions were likely to respond more to "downside risks to growth", rather than "upside risks to inflation".
Meanwhile, bankers said year-on-year credit growth, which fell below RBI's projection of 18% to 17.5% as on December 2, was unlikely to improve in the current financial year.
However, Mallya said he is still optimistic with respect to credit growth for the current fiscal. "I expect 18% credit growth for FY12," he said adding, "asset quality could be under stress due to economy decelerating."
On aviation, the sore point for the banking sector, Mallya said, the banks' exposure to Air India is at around Rs 40,000 crore. "For now, Air India has not falling into the NPA category." Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying videos. Q: Did it surprise you that it was a no action credit policy? Would you be a little unhappy that the Reserve Bank hasn
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