Mr Deepak Parekh

Our Bureau

Hyderabad, May 14 The HDFC Chairman, Mr Deepak Parekh, on Thursday hinted at both deposit rates and lending rates coming down further, taking a cue from the SBI’s initiative to slash deposit rates recently.

Responding to queries from reporters here, Mr Parekh said that other banks will follow SBI moves and “we will initially see deposit rates coming down. However, while lending rates will also come down, it will not happen overnight”.

Speaking on the sidelines of the launch of ‘India and the Global Financial Crisis, Managing Money and Finance,’ a book written by the former RBI Governor, Dr Y.V. Reddy, the HDFC chief said there is enough liquidity in the system compared with October-November last. Mr Parekh said “the interest rates continued to show downward trend and this will also reflect in positive credit growth in the financial year 2010. For instance, HDFC sees a credit growth of about 20 per cent in FY 2010.”

He expressed optimism in the country recording a GDP growth rate of over 6 per cent for FY 2009.

The HDFC chief, who is also a Government-nominated member on Satyam Computer’s board, said that senior members of the company are in the process of interacting with Satyam’s clients overseas and assuring them of business continuity.

He said once they are back, a meeting of the company board will be convened for further action.

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