HDFC rules out rate cut in FY12, ICICI sees one in Q1FY13

Moneycontrol Bureau

Like most investors and economists, Keki Mistry, Vice Chairman and CEO of  HDFC too thinks that the Reserve Bank of India is unlikely to cut rates this fiscal. Noting that the central bank is not in a hurry to cut rates, Mistry said the RBI will watch core inflation and budget deficit before going ahead with a rate cut.
Mistry, however, is expecting the RBI to inject some liquidity in the system.
Headline inflation slowed to its lowest level in more than two years in January as food prices fell, increasing the pressure on the central bank to cut rates to battle the country's economic slowdown. The central bank had a 20-month tightening cycle that ended in October. Home loans
HDFC has a strong demand for housing loans in the tier 2 and tier 3 cities and there is unlikely to be any change in it. However, Mumbai may show some loss in appetite of home loans due to high property prices, Mistry said. (Read full interview here.) Lending rates
Meanwhile, Chanda Kocchar, MD and CEO of ICICI Bank assured that lending rates will come down in the first quarter of FY13. Banks may start cutting lending rates in April-June and will keenly watch impact of CRR cut before reducing it.
Talking about the bank, Kocchar said that exposure in telecom is very less. Nasrin Sultana nasrin.sultana@network18online.com