The Hindu Business Line : `Interest rates expected to fall after March 31'

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Hyderabad Feb. 24 Mr T.S. Bhattacharya, Managing Director (Commercial Banking group) of State Bank of India, has predicted that interest rates will drop after March 31, 2007.

"We are expecting a fall after March 31. Generally we see liquidity in the first three months of the financial year. Also, we expect a substantial fall in demand from real estate," he said.

Mr Bhattacharya was here on Saturday in connection with the two-day national conference on information systems audit.

The RBI's decision to pay interest rate on CRR too would help the bank. "We hope that there will be a fall in interest rates for productive sectors," he said.

Talking to reporters on the sidelines of the conference, he said the bank expected an amendment to be made during the Budget session modifying the SBI Act and allowing the bank to go for a public issue.

Mr P.K. Mitra, Deputy Managing Director of SBI, said that there was need to have a robust internal audit system and proper implementation of the suggestions made by the auditors. This was necessary to plug the gaps and check frauds.

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