Ahead of the credit policy, SBI chairman Pratip Chaudhuri today said one percent cut in cash reserve ratio (CRR) will lift investors sentiment and mood in the economy.
“If there is a one percent CRR cut, I think more than the actual cut
which ofcourse would happen in time, it will give a boost to the whole investment mood, the lenders mood and the mood in the economy,” Chaudhuri said in an interview to a television channel.
He said the bank has requested the RBI to bring down interest rates as it was necessary at this point of time.
“It is not expectation, we have made a request to RBI that this is the time when we need to get the rate of interest down. I do not say that getting the rate of interest down will solve all problems, in my view this is a necessary but, a sufficient condition,” he said.
The RBI is set to come out with its mid-quarterly policy review on Monday, in which it is widely expected to cut interest rates to boost economy.
Chaudhuri said in case the RBI cuts rates, “We will drop the lending rates first and then deposit rates have to be calibrated depending on what other forms of savings are offering. If there is a room for further deposit rate cut, then we will drop the lending rates even further.” (curtsey : first post)
Rupesh Yatesh Dalal
Head Research Department
Head Research Department
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