RBI might hike CRR if inflation remains : Drabu

RBI might hike CRR if inflation remains : Drabu
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First Published: Wed, Jun 11 2008. 03 07 PM IST
Updated: Wed, Jun 11 2008. 03 07 PM IST
PTI
Mumbai: Growing inflationary pressures on the domestic economy owing to the unprecedented jump in international crude oil prices might prompt the Reserve Bank to resort to more liquidity tightening measures, such as a further hike in Cash Reserve Ratios, a top banking industry official said.
“You may probably see some more liquidity controls like the CRR being altered again...if oil prices go beyond tolerable levels..,” J&K Bank’s Chairman and Chief Executive Officer, Haseeb A Drabu, told reporters on the sidelines of a seminar.
Drabu said the bank has seen pressure on its margins in the last fiscal, due to the general market environment and slowdown in the economy, with the slowdown more visible in its retail and credit portfolios.
“We do see some impact. This is becasue of the general environment and also due to a slowdown in the country’s economy. While there is a visible slowdown in retail and real estate portfolios, industrial credit segment has been less affected,” he said.
The bank has targeted a 35% growth in its net profit for the fiscal year and a 30% growth in its credit off-take, he said.
J&K Bank, presently, has a deposit base of Rs 28,000 crore which is expected to go upto Rs 36,000 crore by the year-end while the contribution of current account, savings accounts deposits (CASA) is likely to go up to 42% of the total deposits from the present 40%, Drabu said.
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First Published: Wed, Jun 11 2008. 03 07 PM IST