“We have to find a balanced path — Right balance between controlling some of the challenges that may come (and) at the same time (ensuring that) growth momentum does not get diluted,” ICICI Bank CEO & Managing Director Chanda Kochhar told PTI.
She, however, felt that interest rates, which are at present ruling at the lowest in about five years, could go up a bit over a year’s time.
“No I am not subscribing to any single view,” Kochhar, said when asked whether she subscribed to the finance ministry’s view that inflation in India was segmented and limited to food sector or the RBI’s concern over inflationary pressures.
Though she felt that cost of money was not high in India, Kochhar said that “over one year’s time, interest rates could go (up) a little bit, but I am not seeing any immediate increase in this financial year.”
The efforts to contain inflation by the central bank should not be “at the cost of allowing growth momentum to come down,” Kochhar said, adding that “We have done that nicely in the past one year (and) that is how we should move. We can’t swim to either of the two extremes.”
As regards interest rate outlook for next fiscal, she said the rates could go up gradually with likely pick up in demand for credit by the industry.