With liquidity position in the system being comfortable, credit growth is expected to pick up from now onwards, IDBI Limited CMD V P Shetty said in Mumbai on Wednesday.
Speaking to reporters on the sidelines of the second working conference on Environmental Governance Standards, Shetty said comfort on the liquidity front could be gauged from the fact that RBI was absorbing excess liquidity from the system through the reverse repo route.
On credit pick-up, he said, "We have given lots of sanctions and now the time for their disbursal has come. Every month, we are giving fresh retail credit of around Rs 350 crore (Rs 3.5 billion)."
There has also been an accretion of Rs 2,000-crore (Rs 20 billion) to IDBI's deposit base of Rs 26,000 crore (Rs 260 billion) since March, Shetty said.
On IDBI hiking its interest rates, he said any action on this would depend on various factors such as IDBI's resource position and demand for credit, while on the deposits side, any hike would depend on what kind of resources one required and at what cost.
"We hold discussions on the matter every fortnight and we will take a view depending upon our requirements," he said.
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