Banks need not raise rates now - IBA chief

There is no need for banks to raise rates at this point as there is abundant liquidity in the system and credit is expected to be slightly low in the first six months of the year, M.V. Nair, chairman of the Indian Banking Association, said on Monday.

Nair, who is also chairman and managing director of state-run Union Bank, said he does not see Union Bank raising rates at least in the first quarter of the current fiscal year.