Page 3 - Banking Liquidity

India's banking system liquidity slips into deficit after 40 months: RBI

India's banking system liquidity has slipped into deficit for the first time in nearly 40 months, according to the Reserve Bank of India

Banking liquidity surplus shrinks on RBI's defence of rupee

GST outflows have also pushed up interbank cost of funds

Top Headlines: LIC IPO gets cabinet nod; liquidity in banking system rises

Business Standard brings to you top headlines on Tuesday

Liquidity in the banking system rises as govt steps up spending

Net daily liquidity absorbed from banks on July 9 was Rs 4.6 trillion, data released on Monday showed

RBI extends safety net; response proactive, loaded and well timed

RBI meant strict business, with a focus on alleviating financing constraints for economic stakeholders at the grass root level bearing a disproportionate burden of the ravaging Covid second wave

NBFCs are key to reaching underserved segments

Most small borrowers don't have other standard KYC documents and hence Aadhaar authentication becomes critical

How RBI's currency operations are spiking forward premia across tenures

From about 3.5 per cent at the start of December to 6 per cent now, three-month forwards rates are most affected

Banking system liquidity on the slide due to advance tax outflow

As of Monday, the banking system liquidity was at a surplus of Rs 4.95 trillion, as against Rs 6.13 trillion a week earlier, on the eve of the deadline for the third instalment of advance tax

RBI likely to pause rate this fiscal, take call on liquidity surplus

Economists say inflation would average above 6 per cent this fiscal, and is unlikely to come down below 5 per cent before March.

Huge liquidity surplus unlikely to be inflationary, say economists

Instead of pushing up inflation, the huge surplus liquidity, bordering at Rs 7 trillion daily, is helping in policy rate transmission and aiding govt to borrow at a cheaper rate

Liquidity and asset quality risks for Indian NBFI to continue, says Fitch

Risks due to impact of coronavirus pandemic on borrowers' repayment capabilities and the effects of the moratorium on collections, says ratings agency

Banks would need additional capital buffer of $20 bn, says Credit Suisse

Slippage of 20% on loans under moratorium to weigh on capital ratios

RBI extends benefits under special liquidity facility for MFs to all banks

Decision taken based on requests received from banks; exposures under this facility will not be reckoned under large exposure framework or for determining priority sector targets

Forward premia slide as markets see dollar crunch despite crude oil mayhem

The forward premium comes down when the demand for the spot is more than the future dollar

Moratorium may lead to greater build-up of credit losses for banks: Moody's

Asia's banking sector profitability will also decline from deteriorating asset quality and lower net interest margins, said Moody's

RBI may cap reverse repo rate to ensure liquidity translates into credit

Lenders to face central bank's censure; board meet in May seen leading to fresh measures

Liquidity surplus in banks races past Rs 4 trn. Will it lead to inflation?

The last such liquidity scene was witnessed just after demonetisation in end of 2016 and early 2017 when banks were parking their deposit-linked money with the central bank

Corporate bond issuances on the upswing, reach Rs 5.45 trillion till August

While liquidity played a role, banks' reluctance to lend due to risk aversion and tightened group borrower exposure limits are pushing firms to the corporate bond market space, say experts