New Delhi: Two-and-a-half weeks after the country’s largest bank, State Bank of India, flagged risks to banks’ margins from additional liquidity and pricing of credit products, RBI Governor Shaktikanta Das The said lenders will have to conduct their own risk assessment and value loans accordingly.

“I do not think so State Bank Of India This has been marked as a complaint. I think SBI has flagged this issue as a concern… which the banks have to pay attention to. Whatever be the liquidity position, in any case the banks have sufficient liquidity and reserve Bank of India Reverse Repo window is open. It is for banks to assess their risk and value their loans accordingly,” Das said at a press conference after the RBI’s fourth bi-monthly money policy statement for 2021-22.

In mid-September, SBI Economic Research said that when other costs are taken into account, banks are facing significant pressure on margins due to lower market rates due to surplus liquidity in the banking system.

Core liquidity, which is the sum of liquidity in the banking system and the cash balance of the government, has been close to Rs 10 lakh crore for more than six months now.

“It is now pertinent to ask whether credit risk is being adequately reflected in pricing. A back-of-the-envelope estimate suggests a core funding cost of the banking system which includes cost of deposits, SLR (statutory liquidity ratio). ) and negative carry on CRR (cash reserve ratio) and return on assets currently stands at 6 per cent, while the reverse repo rate stands at 3.35 per cent,” Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, wrote in a report.

RBI’s Monetary Policy Committee in its fourth bi-monthly monetary policy statement for 2021-2022 (April-March) on Friday left the repo and reverse repo rates unchanged at 4.00% and 3.35%, respectively.