The Reserve Bank of India could cut the cash reserve ratio by one percentage point next week, Mr Ajai Kumar, Chairman and Managing Director, Corporation Bank, said.
Speaking to newspersons after participating in a zonal-level meeting of branch managers here on Wednesday, Mr Kumar said this cut in CRR would release about Rs 64,000 crore into the market.
The rate cut, if it happens, would augur well for the economy, he added.
“Last year, the cost of funds had gone up. With limited accessibility to credit, many projects have been put on hold,” he said. A one percentage point cut in CRR will, therefore, be welcomed, he added.