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Rediff.com  » Business » SBI sees no case for further CRR cut

SBI sees no case for further CRR cut

September 14, 2012 14:30 IST

SBIState Bank of India said on Friday given the present liquidity situation there may not be a case for further cash reserve ratio cut by the Reserve Bank of India for the moment.

"CRR cut is a wish list for every bank. Any time CRR is cut, banks add to their bottomline. But if liquidity is the determining criterion, then I do not see a CRR cut today," SBI managing director Diwakar Gupta said on the sidelines of a Confederation of Indian Industry seminar in Kolkata.

Regarding credit growth of SBI, Gupta said the expected figure was 18 per cent this year.

Last year SBI's credit growth was 15.6 per cent, Gupta said.

"Credit growth has been lagging deposit growth," he said.

He said that the bank was in continuous dialogue with the government for capital infusion of Rs 4,000 crore (Rs 40 billion).

"We are hopeful the money will come shortly," he told reporters.

Asked about the causes of non-performing assets, he said tightness in funding and liquidity and problems in receivables management were the prime causes.

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