How do you see the current financial year when there is talk of growth rate slowing down, inflation already at a very high level and there is talk of hardening of interest rates?
There was a bit of a slowdown in corporate lending in recent months as there was an expectation that rates will come down. So there are sanctions (for loans), but drawals (disbursal) are not there. Now, when there is no expectation that rates will not decrease, disbursal will take place. In case of retail loans, the story is completely different as interest rate expectations are not so material. The market thinks that unrealistically high market prices have affected demand. So people are not waiting for interest rates to fall, but for prices to decrease. The Budget proposals will increase money in the hands of people and encourage people to spend, which will also create some demand for loans. Why did you put your decision on interest rate cut on hold? Our rate cut was to be effective 1 April, but with inflation rising, we thought it will not be appropriate to go ahead. We decided to wait and watch what measures are being taken. Because of the sudden change in expectations, it was bette
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