India First Edition

Comments of Chanda Kochhar, Jt MD, ICICI Bank on RBI move

The reduction in SLR, CRR and REPO are welcome measures to meet the objectives of maintaining adequate liquidity and financial stability as well as conditions conductive to economic growth. The fundamentals in Indian economy and banking sector are strong and these measures will help banking sector to play its role of financial intermediation and will keep the economy on growth path amidst the challenging global condition. It will have a cooling effect on inter bank and call money rates. However the impact on deposit and lending rates will have to be watched over sometime.