Contact Your Financial
Adviser Money Making MC
2
January 2017
After a New Year gift of 0.9 percentage
point cut in lending rates, State Bank of India (SBI) Chairperson Arundhati
Bhattacharya on Monday said she saw normalcy return to the banking system by
end-February or March, with uptake in credit growth. The Total Investment & Insurance Solutions
Her reference was to the events
following the demonetisation of Rs 500 and Rs 1,000 currency notes, which put
enormous pressure on commercial banks in servicing people for exchanging or
depositing the old currency. The Total
Investment & Insurance Solutions
The chairperson said banks, indeed, have
huge low-cost funds driven by deposits following the demonetisation drive.
This, she felt, will flow out. "But we expect 40 per cent of that to stay
with the bank," she added. The
Total Investment & Insurance Solutions
"At that time, we will have a
relook at the deposit rates." The
Total Investment & Insurance Solutions
Referring to the rate cut announced on
Sunday, Bhattacharya said: "This is a liquidity-driven rate cut. The
liquidity in the system in unprecedented, in terms of the fact that what we did
in the first nine months of the year, we have done one-and-half times that in
30 days." The Total Investment
& Insurance Solutions
At the same time, this excess liquidity
was marked by a lower credit growth. "But we want to give a very clear
signal that we are open for business. There is demand in the economy and there
should not be any uncertainty on this."The Total Investment & Insurance Solutions
No comments:
Post a Comment