The Reserve Bank of India (RBI) left interest rates on hold on Friday, finally pausing the monetary tightening cycle that had seen it raise rates 13 times since March 2010. The RBI kept its policy repo rate at 8.5% and cash reserve ratio (CRR) at 6%.
Post policy, a couple of big bankers indicated that more than 18% credit growth for this fiscal year looks difficult. Some of them even mentioned that the credit growth would be about 16% for the industry. However, N Kamakodi, managing director and chief executive officer of City Union Bank pointed out that that its growth rate target is 25% for this year.
Talking about the rates, Kamakodi indicated that the rates would decrease only in the second quarter next year or only after June 30. He expects the inflation to come closer to 7% by March so that the RBI can comfortably take a call. Read all the important economy stories here. Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video. Q: What
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