|
Apr 09, 2012, 04.38 PM IST
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.
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,” SBI’s Pratip Chaudhuri told CNBC-TV18.
.
Related News Set email alert for |
Action in State Bank of India
 From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'  The latest earning numbers FIRST on CNBC-TV18
News Videos
|
