RBI should go for CRR cut: SBI

MUMBAI: The Reserve Bank of India (RBI) should opt for cut in cash reserve ratio (CRR) by 50 basis points (bps) in the first quarter monetary policy review, which is slated to be held on July 31, said State Bank of India Chairman Pratip Chaudhuri.

He also said that as liquidity is tight, it is time to address the issue. Bank's are carrying out borrowing via the certificate of deposits at 9-9.20% which means liquidity is tight.

Currently, the CRR stands at 4.75% and RBI lowered it 50 bps during January and 25 bps in March. It had maintained the CRR unchanged in April and June policy announcements.

During the ongoing financial year, Chaudhuri stated that the pace of increase in bad loans slowed. On August 8, SBI will declare the results for the first quarter.

SBI secured $1.25 billion for five years via dollar-denominated bonds.