Banks borrowing at Reserve Bank of India’s liquidity adjustment facility (LAF) today rose sharply to Rs 85,295 crore, a day ahead of reporting Friday.
N Venkatesh, chief general manager (treasury), IDBI Bank said increase in taking more money from RBI reflect strategy to keep themselves adequately covered to meet reporting norms for fortnight ending September 21.
Bank had borrowed about Rs 68,125 crore on Tuesday. The use of liquidity facility has moved up since late last week. On Thursday last (September 13), banks tapped window to raise Rs 30,745 crore.
Rise in borrowings has not put much pressure on the inter-bank rates. They have been moving in band of 8-8.10 per cent. The liquidity in the system is comfortable despite money moving out of system on corporates paying second tranche of advance tax (Income tax), treasury dealers said.
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