Interest rates in India are unlikely to come down in the short to medium term, TS Bhattacharyya, managing director of State Bank of India, the country's biggest bank, said on Wednesday.

"Interest rates (are) unlikely to come down in short to medium term," he told reporters on the sidelines of a business conference in the eastern city of Kolkata.

He said funds available for long-term loans to large infrastructure projects are growing at a slow rate.

"Although there is demand for funding in corporate and infrastructure sectors, lack of resources (funds) for long-term lending is a constraint," he said.

"Higher cost of funds is also making it difficult for interest rates to come down," he said.

Source :Financial Express
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