Which bank will be the biggest beneficiary of CRR cut?
On the basis of the net interest income, it will boost for Indian lenders, CRR cut will largely be positive for the lenders.
On expected lines, the RBI in order to boost the system liquidity which may tighten going forward amid tax outflows, increase in currency in circulation and volatility in capital flows has reduced the CRR requirement to just 4 per cent for all the commercial banking entities in the country.
The first reduction to be made in 2 tranches of 25 bps will be effective from the fortnight beginning December 14, 2024 and then December 28, 2024.
The said reduction in the CRR in the words of RBI's Shaktikanta Das will release primary liquidity of about ₹ 1.16 lakh crore to the banking system.
So, in this landscape here we take you to the country's lenders that will draw the most benefit as per Zee Business research estimates.
Top bank beneficiaries after CRR cut by RBI: SBI
As per Zee Business research estimates, the CRR rate cut will boost net interest income equivalent to 0.8 per cent of its annual Net Interest Income and 1.38 per cent of its pre-provisioning operating profit(PPOP).
Top bank beneficiaries after CRR cut by RBI: PNB
PNB will top the list of bank beneficiaries with their Net Interest income being boosted -such that it accounts to be 0.99 per cent of its annual Net Interest Income and 1.38 per cent of its pre-provisioning operating profit(PPOP).
Top bank beneficiaries after CRR cut by RBI: Federal Bank
Federal Bank will be another notable beneficiary with its Net Interest income being boosted -such that it accounts to be 0.81 per cent of its annual Net Interest Income and 1.19 per cent of its pre-provisioning operating profit(PPOP).
Top bank beneficiaries after CRR cut by RBI: Bank of Baroda
The bank's NII will be boosted such that it be 0.82 per cent of the annual net interest income and 1.24 per cent of the PPOP.
Top bank beneficiaries after CRR cut by RBI: HDFC Bank
For the private sector lender, the CRR rate would mean an increase in NII which will be as much as .66 per cent of the annual NII and 0.78 per cent of PPOP.