Cut in SLR will strengthen credit facilitation: PHD Chamber

Cut in SLR will strengthen credit facilitation: PHD Chamber

Cut in SLR will strengthen credit facilitation: PHD Chamber

No.PR-79
August 5, 2014
New Delhi

 

Cut in SLR will strengthen credit facilitation: PHD Chamber

PHD Chamber welcomes 50 basis points cut in statutory liquidity ratio (SLR) from 22.5% to 22% as it will strengthen credit facilitation by the banking sector. It will give banks more freedom to expand credit to the productive sectors of the economy, said Mr. Sharad Jaipuria, President, PHD Chamber of Commerce and Industry.

RBI in its Third Bi-Monthly Monetary Policy Statement, 2014-15 has kept the repo rate unchanged at 8% and CRR unchanged at 4%.

The monetary policy stance is expected to soften further in the coming times as inflationary scenario is expected to cool down on various measures undertaken by the new government and revival of monsoon conditions, said Mr. Jaipuria.

We believe reduction in the repo rate would be critical to revive the industry sector growth and to refuel growth trajectory in the coming times, he added.
ENDS
Koteshwar Prasad Dobhal
Consultant (PR)