RBI cuts CRR by 2.5% in just one week : Is something wrong with Indian Banks too, Check Out!!!

[Beaware of the the following 3 banks, DCB, ICICI Bank & Yes Bank something wrong, something we don't know is cooking up, did you get the smell]

Hmm, so finally it seems global financial crisis started spreading in India too. If RBI is busy cutting CRR and proving liquidity it means our banks are becoming illiquid, there is no lending in real happening between even two Indian banks, who knows who will die next or who knows whose arms are spread abroad. Six months back any banks with international branch were proud to say, but now thanks to slow growth of our banks abroad, at least we are safe? Are we, I seriously doubt?
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A simple way to find which Indian bank is at the verge of bankruptcy is to look at the share price of the bank; someone said right, “stock market moved 6 months ahead of the real economy”. Didn’t we saw Bear or Lehman share price falling like anything before they went belly up? We will look at the private banks only because they are at more risk to collapse.
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Why RBI cut CRR by 2.5% just in a week’s time? Who is facing liquidity crunch? After all Banks are hardly lending to any corporate or retail investors, their lending has slow down. So what is making this crunch in their book, is it people who are withdrawing money from bank, No Way!!! We poor people tell me how much max we will withdraw?
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It is actually the corporate deposited which was with banks as of now will getting pulled out because corporate are not able to raise fund from bank hence they have no options to pull their funds out, this might be one reason why our banks are facing crunch!!! There are liquidity crunch faced by Mutual funds too. Retail investors are pulling out their money from MF and MF are under huge redemption pressure.
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News Update:-

• The Reserve Bank on Wednesday fed the banking system yet another Rs 65,000 crore through a one per cent cut in banks' mandatory cash deposits (CRR) and disbursal of funds under the farm debt waiver scheme, with the promise that more would be done, if needed.
• "RBI is monitoring developments in the financial markets closely and continuously and would respond swiftly and even preemptively to any adverse external developments impinging on domestic financial stability," the apex bank said announcing release of Rs 40,000 crore through cut in CRR to 6.5 per cent.
• Similar cuts announced by RBI since October 6 has injected a whopping Rs 60,000 crore and along with today's development, banks would get Rs 1,00,000 crore. Factoring in the Rs 25,000 crore that RBI is releasing under the debt waiver scheme and Rs 20,000 crore for mutual funds, the total liquidity infusion amounts to Rs 1,45,000 crore.
• RBI's liberal measures came on a day when stock markets tanked close to 700 points, ending a two-day winning streak that came on the back of government's reassurance that it was continuing to fight the liquidity problems.

-HBJ Capital Team