The Hindu Business Line : CRR cut timely, says KVB chief

The RBI has taken a timely and appropriate measure in cutting the CRR by one percentage point in addition to the 50 basis point cut announced last week. Whether expected or not, the CRR cut is most needed at this juncture for all banks to come out of the liquidity crunch, says Mr P.T. Kuppuswamy, CEO and Managing Director, Karur Vysya Bank. Stating that the liquidity pressure has been mounting globally, and this just-intime response would help infuse liquidity into the Indian banking system, Mr Kuppuswamy said, "the average daily borrowing under repo by the banks is around Rs 90,000 crore. The sharp increase in short term rates in the recent past not only affected the spread of incremental business but also the holding cost of funds. Besides improving liquidity, it is also expected to cool down the money market slightly. Whether the cooling is adequate or further measures are needed will depend on the developments in stock markets and global developments." - Our Bureau

More Stories on : CRR & Bank Rates

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
‘RBI priority for liquidity management’

Satyam refutes reports on World Bank bar

Industry chambers seek softened interest rates

CRR cut timely, says KVB chief

ICICI Bank sends SMS to allay fears of depositors