The country's largest lender, State Bank of India, has said that there will be no hike in lending rates in the next six months as there is surplus liquidity in the market. SBI Chairman O P Bhatt told reporters in Jamshedpur that there is a good amount of liquidity in the market and credit off take is slowly picking up. Referring to the ongoing merger process of SBI associate banks, Bhatt said SBI is a major stakeholder in SBI associate banks like State Bank of Saurashtra and State Bank of Indore. He said, State Bank of Saurashtra has already merged while process is on in regard to State Bank of Indore. He said, the merger will improve SBI in terms of efficiency in operation, release of capital, economies of scale and avoiding waste and duplication. On recession, the SBI chairman said, it had not hit India the way it had affected European countries last year adding that there was only a slowdown in the growth rate which came down to seven per cent from nine per cent. Replying to a question on withdrawal of stimulus package by the government in the prevailing situation, Mr. Bhatt said that the bailout package should not be taken back but 'phased out'.