The RBI has responded well to industry concerns and has added to the supportive measures announced by the Government, according to Ajai Kumar, CMD of Corporation Bank.
He was responding to a query on RBI’s move to reduce CRR by 25 bps.
He said the banks have a window open to reduce their rates. However, it would depend on the ALM profile of the banks.
Ajai Kumar said that at the industry level, there would be a flow of Rs 17,000 crore in the system. The rate cut, if any, will be driven by excess liquidity and other competing factors and not just because of CRR cut, he added.