Credit growth will drive liquidity normalization: Dinesh Kumar Khara, chairman, State Bank of India
Demand for credit will lead to excess liquidity being deployed as loans in the normal course and there may be no further hikes in the cash reserve ratio (CRR), State Bank of India (SBI) chairman Dinesh Kumar Khara told Shritama Bose. The country’s largest lender will take its Yono app to customers of all banks, with payments and analytics playing a major role in the process, he added. It has a direct correlation with the inflation numbers which are coming in, and also the policy announcements by the Reserve Bank of India. The inflation number has come down from 7.79% to 7.04%.