SENSEX NIFTY
Jun 12, 2012, 05.37 PM IST | Source: PTI

SBI expects RBI to cut CRR by 1%

Amid economic slowdown and contracting growth in the manufacturing sector, the country's largest lender SBI said it expects 1% cut in Cash Reserve Ratio (CRR) the portion of deposits that banks are required to keep with the central bank for boosting growth.

Amid economic slowdown and contracting growth in the manufacturing sector, the country's largest lender SBI said it expects 1% cut in Cash Reserve Ratio (CRR) the portion of deposits that banks are required to keep with the central bank for boosting growth.

"We expect the RBI to cut CRR by 1%. It will ease liquidity significantly and lower interest rate," State Bank of India Chairman Pratip Chaudhuri told reporters on the sidelines of an event here.

The Reserve Bank of India (RBI) in its mid-quarter review of monetary policy on June 18 is widely expected to announce steps to boost sagging economic growth, which dipped to nine-year low of 6.5% in 2011-12.

As per the latest data released by the Central Statistical Organisation (CSO), the industrial production during April slowed to 0.1% from over 5.3% in the corresponding month a year ago.
 
According to the data, the capital goods output declined by 16.3% as against a growth of 6.6% in the same month last year. Mining output contracted by 3.1% in April, as against growth of 1.6% in the same month last year.
 
In order to ease liquidity position in the market, RBI had on March 9 cut CRR by 0.75% down to 4.75%. In January, it had reduced CRR by 0.50% to unlock primary liquidity.
 
On the possibility of cut in short-term lending (repo)rate by RBI in its mid-quarter review, Chaudhuri said, "Repo rate cut is meaningless because is more symbolic and (its impact is) not very substantial".

SBI stock price

On October 23, 2014, State Bank of India closed at Rs 2582.35, up Rs 6.80, or 0.26 percent. The 52-week high of the share was Rs 2833.85 and the 52-week low was Rs 1455.95.


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 17.53. 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 1.63.

READ MORE ON  SBI, CRR, deposits, Pratip Chaudhuri , RBI
Set email alert for

ADS BY GOOGLE

video of the day

All portents good; optimistic for next few Diwali's: Damani

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.