Banking industry matured to confront CRR hike

Mumbai, May 5: The banking industry has matured enough to confront yet another hike in Cash Reserve Ratio (CRR) rates even if Reserve Bank of India (RBI) moots such a bid, Indian Bank chairman M S Sundararajan said today.

''In view of the lowered inflation rates, another hike in CRR is not likely. However, the banking industry in India has matured enough to face any such measures,'' Mr Sundararajan said while talking to reporters on the sidelines of Skoch Financial Technological summit here.

''The prime lending rate as of now is 12.50 which is dealing fairly with the market trends. The call rates have also touched lower margins, nearly around 0.50 yesterday. This apart, the market has also enough liquidity in hand. Hence, we hardly see any need to hike the interest rates,'' he said.

Following a series of tightening measurers put up by RBI, the inflation has come under controllable levels, Mr Sundararajan added.

UNI