Liquidity

RBI pilot to boost SDL liquidity; impact on yields likely to be gradual

RBI's Benchmark Issuance Strategy seeks to improve liquidity, transparency and price discovery in SDL market, though impact on borrowing costs may take time

Indian banks' tighter liquidity may add to margin pressure: Report

Margin pressure for Indian banks could increase, as the Reserve Bank of India's (RBI) flexibility to inject local-currency liquidity into the banking system has narrowed amid efforts to contain rupee volatility, a report said on Thursday. However, banks' direct foreign-currency risks remain limited, Fitch Ratings said in a report. "Sector margins could decline by 20-30 bps below our current 3.1 per cent forecast for the financial year ending March 31, 2027 (FY27) if higher funding costs linked to Middle East tensions persist. This could reduce operating profit/risk-weighted assets (RWAs) - our core earnings metric - by around 30-40bps, from our 2.5 per cent forecast for FY27," it said. The base case assumed deposit costs would decline in FY27 as accommodative liquidity would enable further transmission of the RBI's 125 bps of policy rate cuts since December 2024; only 44 bps have been passed through to deposit rates as of January 2026, due to intensified competition for deposits wit

RBI holds 2 VRR auctions in a day amid strong demand for funds from banks

Central bank holds additional ₹50,000 crore VRR auction as banks face year-end liquidity pressures, with demand exceeding notified amounts due to balance sheet adjustments

RBI open market operations help banks cut treasury losses in Q4FY26

RBI's bond purchases and switch operations are helping banks cushion treasury losses in Q4 despite rising yields driven by global volatility and the West Asia crisis

RBI cancels Treasury bill auction amid high bids to boost liquidity

Central bank rejects all bids at weekly auction, aiming to avoid signalling higher yields and support liquidity ahead of financial year-end

Banking liquidity in deficit after 2 months tax outflows, GST payments

Banking system liquidity slipped into deficit after two months due to tax and GST outflows, though experts expect a return to surplus in early April

Banking system liquidity surplus shrinks to ₹16,875 cr, lowest since Jan 22

Liquidity surplus narrows amid advance tax outflows and GST payments, while muted demand seen in RBI's VRR auctions and short-term borrowing shifts to TREPS market

RBI to buy Rs 50,000 crore government bonds through OMO auction on Friday

RBI will purchase Rs 50,000 crore of government bonds through an open market operation auction on Friday as part of its liquidity infusion measures

RBI injects ₹50K cr durable liquidity in banking system via OMO purchases

The Reserve Bank of India (RBI) on Monday injected Rs 50,000 crore into the banking system through Open Market Operation (OMO) purchases of government securities, according to a release. The Central bank purchased 6.33 per cent GS (Government Security) 2035 bonds worth Rs 13,507 crore, 6.01 per cent GS 2030 worth Rs 13,494 crore, 6.10 per cent GS 2031 of Rs 8,157 crore, 7.30 per cent GS 2053 of Rs 6,955 crore, 7.18 per cent GS 2033 worth Rs 4,479 crore, 6.92 per cent GS 2039 of Rs 2,304 crore, and 6.19 per cent GS 2034 of Rs 1,104 crore, it said. The liquidity in the banking system, currently, is estimated to be in surplus of around Rs 2.41 lakh crore. The OMO purchase auction was announced ahead of expected heavy outflows from the banking system due to advance tax and Goods and Services Tax (GST) payments scheduled later this month. This comes even as liquidity conditions in the banking system currently remain in a significant surplus of Rs 3.02 lakh crore. As per RBI data, it has

RBI adopts calibrated approach to liquidity management amid tax outflows

The RBI has announced Rs 1 trillion in OMO purchases to cushion tightening from advance tax outflows, even as broader pressures on durable liquidity persist due to forex interventions

RBI buy-sell swap auction draws bids over twice the notified amount

Three-year dollar-rupee swap draws $25 billion in bids against $10 billion on offer

Union Budget 2026-27: Credit rises amid improvement in asset quality

Rising credit-deposit ratios are straining bank liquidity even as RBI data shows NPAs falling largely due to write-offs, not recoveries

Better liquidity key for microfinance sector's recovery: Industry experts

After months of stress, India's microfinance sector is showing early signs of recovery, with industry leaders saying the worst is over as liquidity improves

Economic Survey: High cost of capital constraining pvt investment, growth

For India to finance sustained growth, it must strengthen long-term capital markets as bond market currently is shallow, illiquid

RBI should include liquid papers in OMOs for better yield signalling: SBI

Despite a cumulative 125 basis point cut in the repo rate and record liquidity injections of about Rs 6.6 trillion during the current financial year, yields remained elevated

RBI to infuse ₹1.25 trillion; $10 billion dollar-rupee buy-sell swap

OMOs will involve the purchase of Government of India securities worth ₹1 trillion in two tranches of ₹50,000 crore each on February 5 and February 12

Bond market to remain under pressure; rupee seen range-bound in 2026

Heavy state government borrowing is expected to keep bond yields elevated in 2026, while the rupee, after its worst Asian performance in 2025, is seen trading in a narrow range

RBI liquidity boost; MUFG–Shriram Finance deal; SFIO probes IndusInd Bank & more

The RBI has announced liquidity infusion of nearly ₹3 trillion into the banking system.

Govt bond yields rally by 9 bps after RBI announces liquidity measures

RBI announced ₹2 trillion of OMO purchases and a three-year $10 billion USD/INR buy-sell swap, triggering the sharpest bond market rally since April 2

Banks step up borrowing via CDs amid deposit tightness; raise ₹77,875 cr

Outstanding CD issuance tops record ₹5.7 trn during the period