Quote of SBI Chairman Mr. Rajnish Kumar on RBI monetary policy
The RBI decision to raise repo rate by 0.25% (25 bps) is a preemptive and welcome move.
Simultaneously, the decision to keep the stance in neutral mode
indicates RBI willingness to be flexible and accommodative. On the
development front, the bouquet of measures are positive. In particular,
the increase in FALLCR will provide more liquidity to banks and moderate
short end interest rates.
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SBI Chairman Mr. Rajnish Kumar |
Other measures like increase in threshold
limits for affordable housing, encouraging continued formalization of
MSME sector are in the right direction.
The change in SDL valuation
norms are long term positives and the spread of MTM losses over 4
quarters will provide the banks with much needed relief.
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