Sanjiv Bajaj, managing director of Bajaj Finserv and Investments joins CNBC-TV18 to discuss what the 50bps means for his company and the industry.
Sanjiv Bajaj, managing director of Bajaj Finserv and Investments joins CNBC-TV18 to discuss what the 50bps hike in lending rates mean for his company and the industry.
The hike will not immediately impact the industry since consumption is strong, but what it will do is slow down the engine eventually, he says. For instance, if new capacity introduction slows, it is going to take a few quarters, maybe even 6-7 quarters to recover, Bajaj points out.
Having said that, since growth is seen very strong in companies such as Bajaj Finserv, the impact of the rate hike is almost negligible. "The maximum it can impact us is by 10%, but since it comes on the back of say, 50% growth, it gets negated," he says.
Below is the verbatim transcript. Also watch the accompanying video
Q: What was your reaction to this big rate hike that we got today and how much do you think it would go ahead and crimp a consumer demand from hereon?
A: The rate hike is something which till a couple of weeks back the market was talking about 50 bps increase, then they thought because growth was looking like its going to moderate, the rate hike would come down. Very clearly, the Central Bank is saying itAre you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.