Asia Bizz: Popular Indian lender State Bank Of India (SBI) is reportedly expecting the Reserve Bank Of India (RBI) to further unlock liquidity by reducing the Cash Reserve Ratio (CRR) by 0.75 percent later in the month. The reduction in the CRR will lead to the moderation of the lending rates.
Pratip Chaudhuri, the SBI chairman, said that his personal stance is to cut the CRR after which everything else should follow. Chaudhuri added that the lending rate will come down automatically.
Last month, RBI slashed the CRR ratio, which is the percentage of deposits that the bank has, to keep with RBI from 5.5 percent to 4.75 percent. The recent reduction of the CRR enabled Central bank to infuse Rs. 48,000 crore in to the economy.
RBI is reportedly looking towards the view of the stake holders in order to formulate the annual monetary policy and it is scheduled to be announced on April 17, 2012. The Reserve Bank Governor, D Subbarao, chaired the meeting which was attended by IBA chairman MD Mallya and chairman and chief executives of the public as well as the private sector banks.
The RBI also met the representatives of the industry chambers on April 3, 2012.