Mumbai: ICICI Bank Ltd will wait and watch for the full impact of Reserve Bank of India's cut in cash reserve ratio before taking a view on reducing lending rates, Managing Director and Chief Executive Officer Chanda Kochhar said on Thursday.
"We should watch really what the total impact of the CRR cut is on the system and how credit grows, and then watch the impact on lending rates," Kochhar said on the sidelines of NASSCOM's India Leadership Summit here.
"I do believe that in the coming financial year and particularly in the first quarter of the financial year, certainly lending rates will start coming down. When and how much is difficult to say."
The RBI had announced a 50-basis-point cut in CRR in its Jan 24 policy.
To a question on the bank's lending to the telecommunication sector, which has been shaken by the recent Supreme Court verdict on 2G licences, Kochhar said ICICI Bank does not have a reason to worry over the legal and regulatory issues. "At least for us, I can say, we have very minimal exposure to the telecom sector," she said.
The Supreme Court, on Feb 2, cancelled all 122 licences issued in 2008 for 2G operations during the tenure of former telecom minister A. Raja, casting a shadow on loans and bank guarantees extended to the affected companies.
At 1235 IST, ICICI Bank shares were down 1.85% at 963 rupees on the National Stock Exchange.