Here are the highlights from the bankers’ press conference.
Pratip Chaudhuri, chairman, State Bank of India:
- There will be transfer of resources from SLR to the real sector
Expect incremental credit to happen in the retail segment
- SLR cut will give some room to cut rates.
- Details will be worked out by asset-liabilities committee.
- SBI SLRis 28, I can either keep it or borrow against it.
- Banks are holding thinking there will be good demand tomorrow, so I can generate money.
- Less chance of reducing deposit rates because of competition.
- Could see room to cut retail rates.
- Asset quality is just fine, it's just a question of perception.
- Short term deposit rate cut difficult
- There may be some room for banks to cut long term deposit rates.
- Greater competition in the retail lending segment to be led by lower rates.
- Need to expand definition of export credit
- The impact of SLR cut will be there will be more liquidity to lend.
- Cost of borrowing depends on liquidity situation.
- Bigger impact of SLR is to make money availbale for credit growth.
- SLR cut gels in very well with monetary stance as liquidity flow to productive sectors will rise
S V Tanksale, Chairman of Indian Bankers' Association:
- Balanced policy action to keep interest rates unchanged.
- Global trade weak, inflationary expectations high in India.
- SLR cut will release Rs 56,000 cr into the system.
- Restructuring guidelines may not affect provisioning burden substantially.
- Credit growth for current financial year likely at 17-18 per cent.
Alok Mishra, CMD, Bank of India:
- RBI will meet bankers shortly to discuss priority sector lending.
- Must relook at priority sector guidelines.