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Tuesday, March 2, 1999
Rate cut to boost bank bottomlines
ENS ECONOMIC BUREAU
MUMBAI, Mar 1: The RBI's decision to cut the CRR, repo rate and the bank rate is expected to boost the commercial banks' bottomlines on account of lower yield to maturity (YTM) for the year ended March 31, 1999. The RBI announces year-end mark to market valuation of securities for banks every year.The lower YTM will come as a boon for the banking sector reeling under the declining spread and an extremely tardy credit offtake in the current fiscal. Bond prices are expected to rally particulalry in the short and medium term, securities market dealers said. As a result, banks are expected to make lower depreciation provisions for year ended March 31, 1999. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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