The Hindu : Business : ‘Rate cut will drive growth’

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Wednesday, Jul 18, 2007
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Business

‘Rate cut will drive growth’

Special Correspondent

Kamath calls for industry-academia partnership

CHENNAI: Reducing the prevailing interest rate was the only way to drive incisive growth, said ICICI Bank Managing Director and CEO, K. V. Kamath.

Talking to reporters here on Tuesday, Mr. Kamath said “if the interest rate is not reduced, it would lead to slowdown in economic growth and would derail the economy. Then it wouldn’t be possible to achieve the Confederation of Indian Industry’s projected economic growth of 9.2 per cent growth for the current year. The decline in consumer demand in the market is due to the rise in interest rate.” Pointing out that credit offtake had slackened, while deposit mobilisation and liquidity remained strong, Mr. Kamath said “an increase in interest rate or maintaining the present one is not good for the industry and we foresee that it will come down after the announcement of the credit policy in the next few weeks.”

Calling for industry-academia partnership to provide industry ready graduates, Mr. Kamath said they were in the process of tying up with various universities and private institutions within the few months. To start with, ICICI group had tied-up with Manipal University, NIIT and Chennai Business School.

The curriculum will be designed by ICICI. Training would be offered in finance, banking, insurance and asset management.

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