The Hindu Business Line : Balance growth and inflation, says Kamath

Growth challenges: Mr. K.V. Kamath, President Designate, CII, and Managing Director & CEO, ICICI Bank, flanked by Mr Kevan Watts (right), President, DSP Merrill Lynch, and Mr U.K. Sinha, Chairman, CII National Committee on MFs, and chief of UTI Asset Management Company, at the release of a study on ‘Mapping of Manpower Skills in Maharashtra-2012’ in Mumbai on Friday. Mr Kamath said that there is a need to maintain a balance between growth and inflation. – Shashi Ashiwal

Our Bureau

Mumbai, April 4 The Indian industry needs to grow, but inflation is a challenge and there is a need to maintain a balance between the two, said Mr K.V. Kamath, Managing Director and Chief Executive Officer, ICICI Bank. The high commodity prices and global uncertainty will not impact India much, which will continue to grow between 8-10 per cent,

Mr Kamath was speaking to reporters on the sidelines of a seminar organised by the Confederation of Indian Industry.

“The extent of our coupling is not as much as other countries. Ours is not an export dependent economy. Our dependence on capital inflows to grow is not very high. Therefore, 8-10 per cent growth is feasible,” he said.

Challenges to growth would be inflation and interest rates, but these are only temporary, as growth is embedded in the system.

Mr Kamath said that the Reserve Bank of India would take adequate measures to tackle inflation, which is largely global and supply driven. He also said that liquidity in the system is comfortable.

Interest rates

About ICICI Bank’s plans to reduce interest rates, Mr Kamath said the bank would take any step only after a signal from RBI.

Interest rates are likely to remain stable said Ms Chanda Kochhar, Joint Managing Director, ICICI Bank. Unlike in the earlier years, this March did not see spiralling of interest rates, she said. Ms Kochhar also said that credit growth is likely to be around 20 per cent this fiscal.

More Stories on : Economy | Events

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Exports overtake domestic sales for auto majors

Auto cos meet alloy steel producers on price issue

A primer on corporate hedging

Inflation climbs to 7%; Govt continues fire-fighting

Rising inflation: India may be neighbours’ envy

Balance growth and inflation, says Kamath

Capital goods, bank stocks dip on high inflation

Hind Unilever will source agri-products from farmers

`SARAL' format for small cos soon

SEBI set to issue norms for real estate schemes ‘very soon’

Bankers readying for wider repo rates band

Markets in bear grip again

Amendments that don’t measure up