CRR, repo rate hike to impact profitability: SBI

In a measure to curb inflation, the Reserve Bank of India has hiked the cash reserve ratio, or CRR as well as the repo rates.

 

Arun Sandilya, CFO, SBI, said that the RBI is trying to take out liquidity from the market to basically curb the inflation rate.

 

He feels that it will impact the profitability of the banks as what the banks get is only 1% on the CRR funds kept with the RBI.