State Bank of India Chairman Pratip Chaudhuri, on Tuesday said the Reserve Bank of India was unlikely to cut banks' CRR in its upcoming policy review. Select bankers, including Chaudhuri, met RBI Deputy Governor Subir Gokarn, in charge of monetary policy.

The Reserve Bank of India will buy back 120 billion rupees ($2.32 billion) of bonds through open market operation on Jan. 13, it said late on Tuesday.

The 10-year benchmark bond yield could open around 8.21 percent and trade in a 8.18 percent to 8.25 percent band, traders said. On Tuesday, it closed at 8.23 percent, 3 basis points above Monday'close.

But, expectations that the central bank will soon adopt a growth supportive stance, which will includes lowering interest rates, is likely to keep underlying sentiment positive.