SLR cut to ease liquidity in banking system: Karnataka Bank chief

Mahabaleshwara MS, Managing Director and Chief Executive Officer of Karnataka Bank (file pic)

Mahabaleshwara MS, Managing Director and Chief Executive Officer of Karnataka Bank Ltd, has said no change in the repo rate was on expected lines.

Reacting to the bi-monthly monetary policy of Reserve Bank of India (RBI) on Wednesday, he said the 50 basis points cut in SLR will further ease liquidity in the banking system.

The revision of the GVA (gross value added) growth forecast from 7.3 per cent to 6.7 per cent is a wake-up call for all growth managers. The ‘neutral stance’ of MPC indicates the wait and watch stand of the regulator, he said.

The evolvement of the Public Credit Registry and Legal Entity Identifier will bring in more credit discipline and, hence, is credit positive, he added.

[“Source-CNBC”]