SBI chief Pratip Chaudhuri attributed increased government borrowing to be the cause for the rise in bond yields. He called for a cut in CRR by the RBI to ease the crunch in funds.
Bond yields have seen a spike of late although they have cooled slightly today. But the spike has alarmed the banking sector. SBI ’s Pratip Chaudhuri attributes increased government borrowing for the yield curve going up. The solution, he explains, is a CRR cut by the central bank.
“The yield curve going up means that the government is borrowing too much and the banking system is not able to provide as much funding. So the only way to ease the supply crunch is cut CRR,” SBI’s Pratip Chaudhuri told CNBC-TV18.
SBI stock price
On August 22, 2014, State Bank of India closed at Rs 2460.45, down Rs 42.55, or 1.7 percent. The 52-week high of the share was Rs 2833.85 and the 52-week low was Rs 1452.90.
The company's trailing 12-month (TTM) EPS was at Rs 147.33 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 16.7. The latest book value of the company is Rs 1584.34 per share. At current value, the price-to-book value of the company is 1.55.
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