India Inc says credit still tight, see more steps

MUMBAI: Companies are still finding liquidity conditions tight despite some aggressive moves by policy makers over the past two months, and more steps might be needed to keep credit flowing, senior executives said on Tuesday. Analysts increasingly expect economic growth could slow to below 7 per cent in the 2008/09 year ending March 2009, with forecasts being downgraded as fears of a global recession grow, from rates of 9 per cent or higher in the past three years. "We have not seen any sharp slowdown in business so far, but there are issues of funding and there are issues of interest rates," K Chandrashekar, senior vice-president of corporate finance at Mahindra and Mahindra, India's top utility vehicle and tractor maker, told reporters at a corporate treasury conference in Mumbai.

Read more at The Economic Times

Consumer credit may slow down: Kamath

Consumer credit may slow down to 20-25 per cent due to rising interest rate and the base effect, ICICI Bank CEO, K V Kamath said.

"Growth has to slacken a bit. Instead of a growth of 40-45 per cent, it will now be in the range of 20-25 per cent due to base effect and interest rate," Kamath said on the sidelines of a CII function.

Read more at Apnaloan.com