State Bank of India has no plans to hike its corporate lending rates in the short term, but said there was a chance of home loan rates going up after Reserve Bank of India tightened norms for the housing sector.
The bank also sees its lending to corporates growing by 18-19 per cent in this fiscal.
"The interest rate will remain stable. Our prime lending rates will remain the same," SBI chairman A K Purwar said on the sidelines of 'Euromoney conference' in New Delhi on Thursday.
This is despite the hike in repo rate by RBI by 0.25 per cent to 4.75 per cent in the busy season credit policy.
SBI lends money to corporates at about 10.25 per cent. The bank offers lower rates to blue-chip clients as well; the rate is higher than the benchmark PLR for others.
Asked if the home loan rate will go up, he said, "there is some chance." SBI's charges 7.75-8.25 per cent interest on home loans for 5-20 years.
"The interest outlook is stable in the short term. It is difficult to say about the interest rate outlook for the medium to long run because of the oil prices," he said referring to the surge in crude prices globally that has pushed up inflation in India.
Purwar said the bank's non-food credit (or loans to industrial sector) was growing by 18-19 per cent in this fiscal.
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