The Hindu Business Line : Interest rates set to stabilise: PNB chief

Mr S.S. Kohli, CMD, PNB, flanked on the left by Mr P.S. Shenoy, Chairman, Indian Banks Association, and on the right by Dr K.C. Chakrabarty, Executive Director, PNB, at a press conference in the Capital on Monday. - - Kamal Narang

New Delhi , Nov. 8

INTEREST rates are unlikely to see a decline from the present levels, the Chairman and Managing Director of Punjab National Bank, Mr S.S. Kohli, has said.

"I think the interest rates should stabilise at the present level,'' Mr Kohli said, while announcing the two-day Bankers' Conference beginning here on November 10.

Mr Kohli pointed out that liquidity was being squeezed out on the back of growth in credit and that inflation has remained over seven per cent after peaking at 8.33 mainly due to surging global crude oil prices.

The two-day conference, being hosted by PNB along with the Indian Banks' Association, would have the theme of `Indian Banking: Realising Global Aspirations'. It would be inaugurated by the President, Dr A.P.J. Abdul Kalam.

The Finance Minister, Mr P. Chidambaram, will deliver the special address while the valedictory session will be addressed by the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia.

Speaking on the proposed merger of IFCI with PNB, Mr Kohli said that SBI Capital Markers was yet to submit its due diligence report.

Mr Kohli said that PNB was awaiting the Government nod for issuing fresh public offer which is slated to hit the market in January next year. ``The proposal is still with the Government. We are waiting for a decision on it (IPO). This is likely to bring down the Government holding from the existing 80 per cent to 67 per cent,'' he said.