SBI Chairman O P Bhatt said there should be some downward revision in lending as well as deposit rates in the new financial year. "There are enough indicators available on this. We have to decide the time and the extent of the cut," Bhatt told reporters on the sidelines of the 53rd convocation ceremony of the Xavier's Labour Relations Institute in Jamshedpur today.

The Asset-Liability Committee of SBI, he said, would take a call on interest rates as and when required.

The chairman said credit growth this quarter had been lower than expected. "We don't know whether this is because of lack of demand or high interest rates," he added.

Bhatt also said there was enough liquidity though there was a significant pressure on interest margins. "There is pressure on net interest margin. Because of various schemes we have introduced in the last two to three years, there has been an increase in the money flow into SBI, which is evident from our rising market share," he said. 

The growth in credit demand during the next financial year would depend on the global economic situation, the timely onset of monsoon and also the new government and its policy stance, he pointed out.

SBI, he said, was awash with liquidity and did not plan to go in for further capital raising. The bank in fact recorded Rs 1,000-crore (Rs 10 billion) deposit everyday in October-November,  he said.

Meanwhile, inaugurating the bank's 1,000th branch at Dhatkidih here, Bhatt said he was surprised at the high deposit figure. "No other bank has such a per day record and the figure is increasing."

SBI has 43 per cent market share and the market cap of the bank was more than that of Citibank, he said.

Loan disbursement during the fiscal till December, too, registered an increase of two-and-a-half times over that of the corresponding period previous year.

SBI, he said, was the preferred bank for the people ranging from the agriculture sector, small and big industries and even self-help groups and for housing or personal loans. "We are opening SBI branches everywhere to ensure services to people from all sections."

The bank had altogether 11,000 ATMs, which was likely to cross the 15,000-mark by next month, he added.