The Chairman and Managing Director of Corporation Bank, Mr Ajai Kumar, has said that the announcement of the Reserve Bank of India (RBI) to reduce CRR by 50 basis points in its third quarter review of monetary policy for 2011-12 is a positive move.
Mr Ajai Kumar said that the whole banking community has welcomed the CRR cut.He said it will certainly infuse the necessary liquidity and at the same time contain inflation as well.
It is a clear signal that RBI has recognised the downside risk in growth, which was actually happening, unless and until the liquidity is improved. With this move, the sentiment itself will become positive, which will automatically result in some better growth trajectory, he added.