Housing Development Finance Corp, India's largest mortgage lender, expects the RBI to cut the cash reserve ratio, rather than interest rates, at its monetary policy review on January 24, Chief Executive Keki Mistry said.

Kashmiri

Kashmiri people perform transactions at a bank in Srinagar.

The Reserve Bank of India has raised interest rates 13 times since March 2010 by a total of 375 basis points in its bid to control headline inflation that has been steadfast above 9 percent for a year.

However, a rapid slowdown in food inflation in December has raised hopes of a reversal in its monetary tightening cycle.

The CRR is the proportion of deposits that commercial banks must keep with the RBI. It now stands at 6 percent.