KR Choksey Investment Managers Pvt Ltd on Monday said by buying the government securities, the Reserve Bank of India (RBI) may cut cash reserve ratio (CRR) in the upcoming monetary policy review. There were reports that RBI will inject Rs 40,000 crore in the banking system in November through the purchase of government securities as it looks to meet festive season demand for funds. Deven Choksey, said, The important aspect is that ICICI Bank has the liquidity and they have got a shot in the arm in the form of buying some of the portfolios from the non-banking finance companies (NBFC). So creating this kind of a situation that on one side you have the liquidity and on other side, you are getting some quality portfolios of the NBFCs, maybe in the housing finance space or maybe in some other space, I think ICICI Bank would have relatively better times going forward, he said.
By buying G-secs, RBI may cut CRR in upcoming policy review, says KR Choksey Investment
