Scheduled commercial banks stand to gain around Rs 1,000 crore from the hike in interest rate paid on eligible cash reserve ratio (CRR) balances with the Reserve Bank of India. The RBI today said it was raising the interest rate from 6 per cent to the revised bank rate of 6.5 per cent.
As a result, State Bank of India, which had CRR balances of Rs 17,628 crore with the RBI as on March 31, 2001, stands to gain Rs 209 crore purely out of the hike in interest rates. This calculation take into account the CRR balances that will be released following the RBI
