Banking Liquidity

As deposit growth lags credit expansion, Indian banks face shrinking low-cost Casa inflows, rising funding costs, and structural shifts driven by UPI, e-Kuber, and digital savings trends

The net liquidity in the banking system has remained in deficit mode for four consecutive days. The system liquidity was in a deficit of Rs 2,645 crore on Thursday, the latest data by the RBI showed

The policy, called fixed rate liquidity operations, will help banks manage their needs better, several bankers proposed to the RBI in meetings held over the last few months

Liquidity jumps on government spending and surplus transfer; RBI gets ₹1.7 tn bids at 7-day VRRR, with cut-off at 5.47%; experts see preference for shorter operations

The Reserve Bank of India will conduct a seven-day variable rate reverse repo (VRRR), for Rs 1 trillion ($11.64 billion) on Friday, its first such operation since November-end

RBI Governor also called banks and primary dealers for their active roles to improve liquidity and pricing for participants like cooperative banks, pension and provident funds with smaller deal sizes

RBI has moved liquidity into the surplus side from a deficit four months ago, and some experts feel it may be preparing for monetary transmission before it cuts the repo rate again next week

Reserve Bank of India is scheduled to meet bank economists on April 3 to take feedback on proposed revisions

The reversal of rules follows the central bank's decision to defer proposals to increase the capital that banks set aside for new project loans and liquidity they hold for digital deposits

RBI Governor Sanjay Malhotra says market determines rupee depreciation, touches on necessary regulations surrounding cryptocurrency

Indian banks' loan growth has moderated for six straight months through December as the liquidity constraints forced lenders to focus on boosting deposits, instead of issuing credit

The cash injection has also led to a decline in the weighted average call rate, which represents banks' overnight borrowing costs

Brokerages believe central bank's actions set the stage for a repo rate cut in February

The average systemic liquidity surplus in August stood at Rs 1.49 trillion, up from Rs 1.02 trillion in July. Over the past 12 months, the average liquidity surplus was Rs 0.49 trillion

According to RBI data, as on September 30, 2023, 37.8% of the NBFC borrowing was from banks

It downgraded First Commonwealth Financial, M&T Bank , Synovus Financial, Trustmark and Valley National Bancorp

The surplus liquidity in the banking system stood at Rs 13,377 crore on Wednesday, against Rs 4,356 crore on Tuesday, according to the latest data by RBI

Reflecting a robust economic growth, bank credit grew 16 per cent year-on-year (Y-o-Y) till January 12 in the current financial year against 16.5 per cent growth last year

The banking system's liquidity primarily stayed in deficit during the third quarter of the current financial year and it widened further in January, driven by tax outflows

ndian banking system is facing a widening liquidity deficit, reaching levels last seen in 2016, that may prompt the central bank to provide another round of short-term cash infusion