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 July 03, 2015, State Bank of India closed at Rs 268.85, up Rs 1.45, or 0.54 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 234.52.
The company's trailing 12-month (TTM) EPS was at Rs 17.32 per share as per the quarter ended March 2015. The stock's price-to-earnings (P/E) ratio was 15.52. The latest book value of the company is Rs 169.77 per share. At current value, the price-to-book value of the company is 1.58.
Set email alert for
ADS BY GOOGLE
video of the day
Economy turning for sure but cant say for mkts: DSP