Bank borrowings up 2x amid rush to fund credit growth, shows RBI data

As liquidity shrinks, lenders' reliance on short-term funding routes increases

Amid a decade-high credit growth, the short-term market borrowings of banks have surged 100 per cent, so far, in the current financial year as lenders seek avenues to fund the accelerated pace of loan demand.

According to the latest data released by the Reserve Bank of India (RBI), borrowings by banks increased to Rs 5.49 trillion as on October 21, 2022, from Rs 2.74 trillion as on March 25, 2022.

The figures, which are listed under the ‘borrowings’ section for scheduled commercial banks in RBI data, largely represent short-term funding routes, such as interbank repo operations and the use of