The present uncertainity in the global scenario due to recent downgrading of the credit rating of United States by noted rating agency Standard &Poor's is not likely to have an impact on Indian lenders having overseas exposure. This fact was given by Chairman of Indian Banks' Association, Mr M D Mallya.

He said that Indian banks would be spared from the heat owing to the fact that they have exposure restricted only to Indian corporates trade related to India.

CMD of Union Bank of India, Mr M V Nair commented on the increasing interest rate scenario in domestic arena saying that it is entirely at the discretion of banks individually as to how much impact they would like to have on their borrowers following the hike.

He added that the rise in interest rates is going to affect the margins of small and medium corporates though.