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Bankers expect CRR hike due to inflation

Bankers expect CRR hike due to inflation

Apnaloan.com Research Bureau

12 Apr 2008

Most bankers expect the Reserve Bank of India (RBI) to increase the cash reserve ratio (CRR) by 25-50 basis points in its annual monetary policy review on April 29.

This expectation is a cause of anxiety for many government banks that reduced prime lending rates between 25 and 50 basis points.

Banks such as Canara Bank had reduced their prime lending rate and are now worried about hiking the rates. Other banks such as IDBI Bank announced a 50 bps reduction on its PLR to roll back the offer in face of increased levels of inflation.

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