CRR cut unlikely?

All eyes will be on the RBI as it unveils in monetary policy on the January 24. The country's top bankers met central bank officials today, as part of the pre-policy consultations and a key takeaway from the meeting is that the RBI is not concerned about the liquidity situation - a view that dampens hopes of a CRR cut this month. CNBC-TV18's Gopika Gopakumar reports.

Banker's including Pratip Chaudhuri of SBI, Chanda Kochhar of ICICI Bank, MD Mallya of Bank of Baroda and MV Nair of Union Bank all met RBI today ahead of the credit policy to discuss various issues including liquidity, growth, asset quality and so on.

On liquidity, bankers have expressed their concern that the system could face some liquidity tightness going forward. They anticipate that the money deployed in deposits could move out of the system and be reinvested in tax free infra bonds.

However, RBI seems to be confident that liquidity is comfortable in the system and that deposit growth is much faster than credit growth, that's the second highlight of the meeting today. Bankers seem to suggest that they will be unlikely to meet the RBIs target of 18% credit growth for FY12. In fact, they are expecting credit growth to be around 16%.

MD Mallya, CMD of Bank of Baroda told CNBC-TV18, "As of we had been around 17% on a year on year basis, at the moment we still look at around 18% for the full year, but then it depends on how exactly the subsequent 2 months they will behave."