Small and medium enterprises (SME) find themselves at the end of the tether as the interest-rate cycle takes its toll, exposing them to the risk of default. Mr Amitabh Chaturvedi, Managing Director and Chief Executive Officer, Dhanlaxmi Bank, sees a likely trigger in the next round of interest-rate hike, if and when that occurs. “Another 50 bps (basis points) in hike may just about see us through, but beyond that defaults will definitely begin to happen,” Mr Chaturvedi told Business Line. The Reserve Bank of India's priority to hold the price line would imply a 25 to 50 bps hike in its policy-making meeting due next month.
HBL
No comments:
Post a Comment