SBI Chairman Pratip Chaudhuri expects 100 bps CRR cut at RBI policy on Sept 17

 

Chaudhuri said, "Just to argue that this is the rule and this is the law... I do not think it is the best way to justify a particular set of (rules)."

By doing away with the CRR, which is currently pegged at 4.75% and on which banks earn no interest, the banking system can get as much as Rs 2.6 trillion which could extended as loans. There has been a public debate ever since Chaudhuri last week said CRR should be done away with. RBI sharply criticized the suggestion. "...if the SBI chairman is not able to do business as per our regulatory environment, he has to find some other place," RBI Deputy Governor K C Chakrabarty had said last week.

Meanwhile, Chaudhuri expects demand for home loans to pick up in the next two-months. "We are seeing good demand for car loans post rate cut," he told Newswire18.