Apr 09, 2012, 04.38 PM IST | Source: CNBC-TV18

SBI calls for CRR cut as high bond yields alarm banks

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.

Pratip Chaudhuri, Chairman, SBI

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.

 

Also read: Expect 25 bps repo rate cut in April policy: Nomura India

 

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, SBIs Pratip Chaudhuri told CNBC-TV18.

 

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SBI stock price

On April 23, 2014, State Bank of India closed at Rs 2064.55, up Rs 15.20, or 0.74 percent. The 52-week high of the share was Rs 2469.25 and the 52-week low was Rs 1452.90.


The company's trailing 12-month (TTM) EPS was at Rs 149.34 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 13.82. The latest book value of the company is Rs 1325.34 per share. At current value, the price-to-book value of the company is 1.56.

READ MORE ON  Bond yelds, SBI, CRR, RBI
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