Quote on Impact of RBI`s statement on incremental CRR Akshay Tiwari By Religare Broking Ltd
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Below is our quote on - Impact of RBI's statement on incremental CRR.
The incremental CRR (I-CRR) is intended to absorb the excess liquidity arising from deposits of Rs 2,000 notes in the system. In the banking system, the I-CRR may lead to setting aside additional reserves of ~Rs 1 lakh cr. This is a temporary measure and the RBI shall assess the demand/supply of liquidity on September 8th, 2023. This measure is not expected to have much impact on the banks profitability in the long run nor do we foresee any incremental pressure on NIMs of banks due to this move. The estimated incremental reserve stands at around 1% of the bank's total credit outstanding.
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