Inflation is likely to figure prominently when the Indian Banks? Association (IBA) delegation meets the deputy governor of the Reserve Bank of India (RBI), Rakesh Mohan, and his team at RBI headquarters in Mumbai on July 8. The meeting is being held on the eve of the first quarterly review of the annual monetary policy of the current fiscal by the RBI, which was slated for July 29.
Speaking to FE, the newly appointed chairman of IBA and chairman and managing director of the state-run Bank of India, TS Narayanasami, said ?We will discuss inflation from a banker’s perspective during the meeting.” The fresh inflation figure is likely to be announced by the Government of India today. Inflation stood at 11.42% as on June 14. We will also be discussing the current market scenario and will give our suggestions accordingly ,when we go to meet the RBI deputy governor, said Narayanasami who will be leading the delegation of bank chiefs on the day.
As already reported by the FE, inflation was all set to hit banks? performances as a whole when they announce their results later this month. This is more because of the bond yields? touching a seven-year high thanks to the depreciation in their treasury portfolio, which was further due to high interest rates.
Normally, the bankers give their views when they go to meet the top brass RBI officials before every policy review, which is held on quarterly basis.
The RBI has already appointed a technical advisory committee to assess the true meaning of inflation.