The Chairman and Managing Director of Exim Bank, Mr T.C.A. Ranganathan, on Friday said that there could be more rate hikes as inflation indices were still ruling high.
“This may not be the last time that we are seeing a rate hike, the cycle may continue because of the rising inflation. Industry must also adjust to this,” he told newspersons on the sidelines of a meeting organised by the Indian Chamber of Commerce here today.
The Reserve Bank of India today raised its key policy rates by 25 basis points to curb inflation.
The rise in non-performing assets of public sector banks was not merely because of the rise in interest rates but due to the economic slowdown, he pointed out.
The financial situation in the US and Euro zone was encouraging Indian exporters to look at newer geographies such as Latin America and Africa. “The profit margins of corporate might come under pressure with the cost of borrowing overseas increasing. This might also encourage exporters to diversify to newer markets,” he said.
Exim Bank, the CMD said, was keen on financing export clusters in the country.
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