RBI to unveil monetary policy for 2013-14 on May 3

 

 

RBI Governor D Subbarao

 

 

RBI Governor D Subbarao

Bankers have sought a 0.5 per cent cut in their cash reserve requirement to tide over tight liquidity situation, and to help stem slide in investments.

They also sought a review of the elevated provisioning requirements, bankers told reporters after the customary pre-policy meeting with the Reserve Bank top brass.

Although there did not appear to be a clear consensus on what bankers wanted from the Reserve Bank in its monetary policy announcement on May 3, the larger view was that it should effect a 50 bps cut in the Cash Reserve Ratio to ease liquidity crunch.

CRR - portion of deposits that banks keep with RBI - is 4 per cent, after the 25 bps cut in the January policy, while the short-term lending (repo) rate is at 7.5 per cent.

Some banks demanded a cut in the short-term lending rate to boost credit pick-up, but the larger view was that a CRR cut would make monetary transmission faster as a mere repo cut would not help them slash their lending rates due to high cost of deposits.
All leading banks recently increased their term rates to attract deposits, the growth of which have been way below the RBI target of 15-16 per cent.

The heads of large banks like SBI, ICCI and HDFC Bank did not meet the media. The chief of apex bankers body IBA was also not available for comments.

"We think that there should be a CRR cut now, as the main issue is of liquidity. We expect the RBI to slash CRR by 50 bps," Chairman and Managing Directors of Bank of Baroda S S Mundra said.

Bank of India CMD Vijayalaxmi Iyer held the same view.

Banks have been borrowing over Rs 1.2 lakh crore on an average from the RBI's overnight window every day. In this regard they also urged RBI to conduct more open market operations to ea

RBI Governor D Subbarao

Bankers have sought a 0.5 per cent cut in their cash reserve requirement to tide over tight liquidity situation, and to help stem slide in investments.

They also sought a review of the elevated provisioning requirements, bankers told reporters after the customary pre-policy meeting with the Reserve Bank top brass.

Although there did not appear to be a clear consensus on what bankers wanted from the Reserve Bank in its monetary policy announcement on May 3, the larger view was that it should effect a 50 bps cut in the Cash Reserve Ratio to ease liquidity crunch.

CRR - portion of deposits that banks keep with RBI - is 4 per cent, after the 25 bps cut in the January policy, while the short-term lending (repo) rate is at 7.5 per cent.

Some banks demanded a cut in the short-term lending rate to boost credit pick-up, but the larger view was that a CRR cut would make monetary transmission faster as a mere repo cut would not help them slash their lending rates due to high cost of deposits.
All leading banks recently increased their term rates to attract deposits, the growth of which have been way below the RBI target of 15-16 per cent.

The heads of large banks like SBI, ICCI and HDFC Bank did not meet the media. The chief of apex bankers body IBA was also not available for comments.

"We think that there should be a CRR cut now, as the main issue is of liquidity. We expect the RBI to slash CRR by 50 bps," Chairman and Managing Directors of Bank of Baroda S S Mundra said.

Bank of India CMD Vijayalaxmi Iyer held the same view.

Banks have been borrowing over Rs 1.2 lakh crore on an average from the RBI's overnight window every day. In this regard they also urged RBI to conduct more open market operations to ea

RBI Governor D Subbarao

Bankers have sought a 0.5 per cent cut in their cash reserve requirement to tide over tight liquidity situation, and to help stem slide in investments.

They also sought a review of the elevated provisioning requirements, bankers told reporters after the customary pre-policy meeting with the Reserve Bank top brass.

Although there did not appear to be a clear consensus on what bankers wanted from the Reserve Bank in its monetary policy announcement on May 3, the larger view was that it should effect a 50 bps cut in the Cash Reserve Ratio to ease liquidity crunch.

CRR - portion of deposits that banks keep with RBI - is 4 per cent, after the 25 bps cut in the January policy, while the short-term lending (repo) rate is at 7.5 per cent.

Some banks demanded a cut in the short-term lending rate to boost credit pick-up, but the larger view was that a CRR cut would make monetary transmission faster as a mere repo cut would not help them slash their lending rates due to high cost of deposits.
All leading banks recently increased their term rates to attract deposits, the growth of which have been way below the RBI target of 15-16 per cent.

The heads of large banks like SBI, ICCI and HDFC Bank did not meet the media. The chief of apex bankers body IBA was also not available for comments.

"We think that there should be a CRR cut now, as the main issue is of liquidity. We expect the RBI to slash CRR by 50 bps," Chairman and Managing Directors of Bank of Baroda S S Mundra said.

Bank of India CMD Vijayalaxmi Iyer held the same view.

Banks have been borrowing over Rs 1.2 lakh crore on an average from the RBI's overnight window every day. In this regard they also urged RBI to conduct more open market operations to ea

RBI Governor D Subbarao

Bankers have sought a 0.5 per cent cut in their cash reserve requirement to tide over tight liquidity situation, and to help stem slide in investments.

They also sought a review of the elevated provisioning requirements, bankers told reporters after the customary pre-policy meeting with the Reserve Bank top brass.

Although there did not appear to be a clear consensus on what bankers wanted from the Reserve Bank in its monetary policy announcement on May 3, the larger view was that it should effect a 50 bps cut in the Cash Reserve Ratio to ease liquidity crunch.

CRR - portion of deposits that banks keep with RBI - is 4 per cent, after the 25 bps cut in the January policy, while the short-term lending (repo) rate is at 7.5 per cent.

Some banks demanded a cut in the short-term lending rate to boost credit pick-up, but the larger view was that a CRR cut would make monetary transmission faster as a mere repo cut would not help them slash their lending rates due to high cost of deposits.
All leading banks recently increased their term rates to attract deposits, the growth of which have been way below the RBI target of 15-16 per cent.

The heads of large banks like SBI, ICCI and HDFC Bank did not meet the media. The chief of apex bankers body IBA was also not available for comments.

"We think that there should be a CRR cut now, as the main issue is of liquidity. We expect the RBI to slash CRR by 50 bps," Chairman and Managing Directors of Bank of Baroda S S Mundra said.

Bank of India CMD Vijayalaxmi Iyer held the same view.

Banks have been borrowing over Rs 1.2 lakh crore on an average from the RBI's overnight window every day. In this regard they also urged RBI to conduct more open market operations to ea

RBI Governor D Subbarao

Bankers have sought a 0.5 per cent cut in their cash reserve requirement to tide over tight liquidity situation, and to help stem slide in investments.

They also sought a review of the elevated provisioning requirements, bankers told reporters after the customary pre-policy meeting with the Reserve Bank top brass.

Although there did not appear to be a clear consensus on what bankers wanted from the Reserve Bank in its monetary policy announcement on May 3, the larger view was that it should effect a 50 bps cut in the Cash Reserve Ratio to ease liquidity crunch.

CRR - portion of deposits that banks keep with RBI - is 4 per cent, after the 25 bps cut in the January policy, while the short-term lending (repo) rate is at 7.5 per cent.

Some banks demanded a cut in the short-term lending rate to boost credit pick-up, but the larger view was that a CRR cut would make monetary transmission faster as a mere repo cut would not help them slash their lending rates due to high cost of deposits.
All leading banks recently increased their term rates to attract deposits, the growth of which have been way below the RBI target of 15-16 per cent.

The heads of large banks like SBI, ICCI and HDFC Bank did not meet the media. The chief of apex bankers body IBA was also not available for comments.

"We think that there should be a CRR cut now, as the main issue is of liquidity. We expect the RBI to slash CRR by 50 bps," Chairman and Managing Directors of Bank of Baroda S S Mundra said.

Bank of India CMD Vijayalaxmi Iyer held the same view.

Banks have been borrowing over Rs 1.2 lakh crore on an average from the RBI's overnight window every day. In this regard they also urged RBI to conduct more open market operations to ea

RBI Governor D Subbarao

Bankers have sought a 0.5 per cent cut in their cash reserve requirement to tide over tight liquidity situation, and to help stem slide in investments.

They also sought a review of the elevated provisioning requirements, bankers told reporters after the customary pre-policy meeting with the Reserve Bank top brass.

Although there did not appear to be a clear consensus on what bankers wanted from the Reserve Bank in its monetary policy announcement on May 3, the larger view was that it should effect a 50 bps cut in the Cash Reserve Ratio to ease liquidity crunch.

CRR - portion of deposits that banks keep with RBI - is 4 per cent, after the 25 bps cut in the January policy, while the short-term lending (repo) rate is at 7.5 per cent.

Some banks demanded a cut in the short-term lending rate to boost credit pick-up, but the larger view was that a CRR cut would make monetary transmission faster as a mere repo cut would not help them slash their lending rates due to high cost of deposits.
All leading banks recently increased their term rates to attract deposits, the growth of which have been way below the RBI target of 15-16 per cent.

The heads of large banks like SBI, ICCI and HDFC Bank did not meet the media. The chief of apex bankers body IBA was also not available for comments.

"We think that there should be a CRR cut now, as the main issue is of liquidity. We expect the RBI to slash CRR by 50 bps," Chairman and Managing Directors of Bank of Baroda S S Mundra said.

Bank of India CMD Vijayalaxmi Iyer held the same view.

Banks have been borrowing over Rs 1.2 lakh crore on an average from the RBI's overnight window every day. In this regard they also urged RBI to conduct more open market operations to ea

RBI Governor D Subbarao

Bankers have sought a 0.5 per cent cut in their cash reserve requirement to tide over tight liquidity situation, and to help stem slide in investments.

They also sought a review of the elevated provisioning requirements, bankers told reporters after the customary pre-policy meeting with the Reserve Bank top brass.

Although there did not appear to be a clear consensus on what bankers wanted from the Reserve Bank in its monetary policy announcement on May 3, the larger view was that it should effect a 50 bps cut in the Cash Reserve Ratio to ease liquidity crunch.

CRR - portion of deposits that banks keep with RBI - is 4 per cent, after the 25 bps cut in the January policy, while the short-term lending (repo) rate is at 7.5 per cent.

Some banks demanded a cut in the short-term lending rate to boost credit pick-up, but the larger view was that a CRR cut would make monetary transmission faster as a mere repo cut would not help them slash their lending rates due to high cost of deposits.
All leading banks recently increased their term rates to attract deposits, the growth of which have been way below the RBI target of 15-16 per cent.

The heads of large banks like SBI, ICCI and HDFC Bank did not meet the media. The chief of apex bankers body IBA was also not available for comments.

"We think that there should be a CRR cut now, as the main issue is of liquidity. We expect the RBI to slash CRR by 50 bps," Chairman and Managing Directors of Bank of Baroda S S Mundra said.

Bank of India CMD Vijayalaxmi Iyer held the same view.

Banks have been borrowing over Rs 1.2 lakh crore on an average from the RBI's overnight window every day. In this regard they also urged RBI to conduct more open market operations to ease  liquidity crunch.

 

 

 

These bankers said they have also sought a review of the new provisioning norms for the restructured assets, as at 5 per cent it will impact their already tight profitability.

                                                        Amjad khan

                                                         pgdm 2nd sem