N.Sukumar
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to Kences1
MUMBAI: Growing inflationary pressures on the domestic economy owing
to the unprecedented jump in international crude oil prices might
prompt the Reserve Bank to resort to more liquidity tightening
measures, such as a further hike in Cash Reserve Ratios, a top banking
industry official said on Wednesday.
"You may probably see some more liquidity controls like the CRR being
altered again...if oil prices go beyond tolerable levels..," J&K
Bank's Chairman and Chief Executive Officer, Haseeb A Drabu, told
reporters on the sidelines of a seminar here.
Drabu said the bank has seen pressure on its margins in the last
fiscal, due to the general market environment and slowdown in the
economy, with the slowdown more visible in its retail and credit
portfolios.
"We do see some impact. This is becasue of the general environment and
also due to a slowdown in the country's economy. While there is a
visible slowdown in retail and real estate portfolios, industrial
credit segment has been less affected," he said.
The bank has targeted a 35 per cent growth in its net profit for the
fiscal year and a 30 per cent growth in its credit off-take, he said.
J&K Bank, presently, has a deposit base of Rs 28,000 crore which is
expected to go upto Rs 36,000 crore by the year-end while the
contribution of current account, savings accounts deposits (CASA) is
likely to go up to 42 per cent of the total deposits from the present
40 per cent, Drabu said.
N.Sukumar
Research Analyst