ICICI Bank said on Thursday it was hopeful that the measures taken by the Reserve Bank of India would help sustain interest rates at a lower level.
"We are hopeful that the measures taken by the RBI will help sustain interest rates at a lower level. We are interested that they (interest rates) come down," ICICI Bank executive director V Vaidyanathan told reporters on the sidelines of a Confederation of Indian Industry summit in Mumbai.
Vaidyanathan said he was also hopeful that deposit rates would decline as well.
"But there are a number of things playing with each other...there is the CRR and other things."
Describing the fiscal measures taken by the Centre earlier this week as 'very important', Vaidyanathan said 'the government has taken the right step in the right direction to rev up the economy,'
The government had introduced a stimulus package which has cut central value added tax (Cenvat) by 4 per cent to give a boost to the real estate, auto and infrastructure sectors.
"The government's decision to reduce fuel prices would significantly impact the economy," the ICICI official said.In June, the government had hiked fuel prices, contributing to a double-digit inflation. It slashed prices of petrol by Rs 5 per litre and diesel by Rs 2 a litre from December 8 in view of falling global crude prices.
In terms of customer confidence, Vaidyanathan said 'consumer confidence in banking and deposits are higher than what it was last year. Consumers are coming back now.
Their confidence would be restored once the fog over the stock markets is cleared.'
People were looking at alternative investments, the ICICI Bank executive said.
Once the situation in the stock markets stabilise, 'people will start diversifying their investments,' Vaidyanathan said.
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