RBI reduced the cash reserve ratio (CRR) by 50 basis points (bps) in two equal tranches of 25 bps each to 4 per cent of net demand and time liabilities (NDTL) with effect from the fortnight beginning December 14 and December 28 this year respectively. The release of ₹1.16 lakh crore (~$13.67 billion) due to CRR cut may ease the liquidity situation in the coming months, SBI said.
The State Bank of India believes that FY25 GDP growth will be 6.3 per cent, lower than the RBI estimate of 6.6 per cent.
The release of $13.67 billion due to RBI’s cash reserve ratio (CRR) cut may ease the liquidity situation in the coming months, it noted.
The CRR cut may not mathematically translate to any change in deposits and lending rate, though it may positively affect banks’ margins.
However, the reduction in CRR may not mathematically translate to any change in deposits and lending rate, though it may have positive impact on margins of the banks, the bank said in the latest issue of its newsletter SBI ECOWRAP.
Fibre2Fashion News Desk (DS)
