'RBI might hike CRR if inflation remains'
J&K Bank chairman says growing inflationary pressures on the economy due to the jump in crude oil prices may prompt the RBI to resort to more liquidity tightening measures.india Updated: Jun 11, 2008 14:34 IST
Growing inflationary pressures on the domestic economy owing to the unprecedented jump in international crude oil prices might prompt the Reserve Bank to resort to more liquidity tightening measures, such as a further hike in Cash Reserve Ratios, a top banking industry official said on Wednesday.
"You may probably see some more liquidity controls like the CRR being altered again...If oil prices go beyond tolerable levels..," J&K Bank's Chairman and Chief Executive Officer, Haseeb A Drabu, told reporters on the sidelines of a seminar in Mumbai.
Drabu said the bank has seen pressure on its margins in the last fiscal, due to the general market environment and slowdown in the economy, with the slowdown more visible in its retail and credit portfolios.
"We do see some impact. This is becasue of the general environment and also due to a slowdown in the country's economy. While there is a visible slowdown in retail and real estate portfolios, industrial credit segment has been less affected," he said.
The bank has targeted a 35 per cent growth in its net profit for the fiscal year and a 30 per cent growth in its credit off-take, he said.
J&K Bank, presently, has a deposit base of Rs 28,000 crore which is expected to go upto Rs 36,000 crore by the year-end while the contribution of current account, savings accounts deposits (CASA) is likely to go up to 42 per cent of the total deposits from the present 40 per cent, Drabu said.