The CRR cut announced today would not have any impact on the industry or the credit growth, it is merely reflecting the fact that RBI is willing to act when required. RBI had reduced the rupee liquidity by approximately 40,000 cr in the 3d qtr of the current fiscal when it has sold dollars to contain the fall of rupee. What it has done by reducing the CRR is to get the liquidity back to the levels of Sep 2011. The average borrowing of banks each day has been to the tune of 1.25 lac cr, which is double of what it should ideally be. Inflation still remains a major concern and inflation will not get contained because it is happening due to structural and international issues. Oil prices have a risk of spiralling upwards and the probability of the government containing its deficit is also very low.
If the GDP of 3d qtr remain in the 7 % range I have my doubt if RBI would cut rates in April. The banks are still risk averse and would remain so till the business environment is good. The credit growth to my mind will continue to remain low for the first half of the current calendar year.
MR. SIDDHARTH SHANKAR, Director, KASSA INDIA
Mr. Siddharth Shankar is a leading Economist & Financial Expert. He has been associated with KASSA group since its incorporation under various capacities as a Director, shareholder and consultant. An expert in the field of Macro-Economics, Mr. Siddharth Shankar has established himself as a mastermind in tackling financial hurdles for his clients. He has more than a decade's expertise in structuring financial products for companies to cover their financial risks that were generated due to their international exposure to money and commodity markets. He has been involved with the marketing systems of Google, Yahoo and other global search engine giants to achieve maximum effectiveness of their campaigns. His expertise also lies in Product Conceptualization and Web- based marketing of Products.
Being a thought leader in the field of Macro-economic, he can provide a detailed analysis on the subject for your esteemed publication.
Being a thought leader in the field of Macro-economic, he can provide a detailed analysis on the subject for your esteemed publication.
Mr. Siddharth Shankar started raising his career graph at the tender age of 19. He had set-up his first fully automatic diamond cutting plant production unit, the first of its kind in Delhi, employing 20 people. By the time he touched his 20`s, he initiated trading of diamonds in the world’s largest diamond market-Antwerp. During this period he simultaneously started giving consultancy on Financial Management to various corporate houses in Europe, India and South-East Asia.
At 22, as a seasoned Financial Risks Manager, he started structuring Financial Products for companies to cover their financial risks that were generated due to their international exposure to Money and commodity markets.
