Although bankers expect RBI to cut CRR, the inflation at 7%, uncertainty over monsoon may play the spoilsport
Sonal Varma and Aman Monunta, economists, Nomura said, "We expect the RBI to keep policy rates (repo, reverse repo) unchanged, in line with consensus expectations. While growth remains weak, upside risks to inflation have risen due to a deficient monsoon. We expect the RBI to maintain its WPI inflation projection at 6.5% by March 2013. However, with food prices on the rise, the central bank could highlight upside risks to its projection".
Yes Bank Managing Director Rana Kapoor said, "I think the chances of repo rate cut happening are less as inflation has taken a pole position in RBI's thinking again."
Chairmen of Central Bank and Union Bank, M V Tanksale and D Sarkar, however, held the view that RBI could go in for cut in CRR to unlock funds and ease the liquidity situation.
RBI had said in its previous policy review that any further action on the monetary policy front would depend on government's fiscal consolidation initiatives.
However, with four months of the fiscal already over the government has yet to announce roadmap to contain the subsidy bill.
iGate CEO Phaneesh Murthy said the company is looking at $3 billion revenues by 2017, from over $1 billion at present
While OBC's total revenues increased 54% to Rs4695.5 crore, its NPAs also rose to about 3% from 2.1%