Difficult to predict 2007-08 outlook, wait & watch: Bankers

llan Pereira, Executive Director at Oriental Bank of Commerce and
B Sambamurthy, Chairman at Corporation Bank comment on the RBI move on Friday.

Pereira says that the hike will affect the liquidity of his bank but that it will rebalance the credit portfolios and look into further mobilizing low-cost deposits. On the PLR side, he hinted at some action in due course and that the bank would not like to rush into a rate hike right now.

Sambamurthy says that due to the interest rates, his bank could see a drop in the net interest margins by about 10-12 basis points, while for 2007-08 it was wait and watch.