Liquidity Crunch

Bond market participants expect more OMO purchases to aid liquidity

Banks bid 4.5x in Thursday's auction

NSE Clearing fails to meet liquidity norms; reports Rs 176.65 cr shortfall

NSE Clearing Ltd, the clearing house of the National Stock Exchange (NSE), has failed to meet the capital markets regulator Sebi's mandated liquidity requirements, citing the non-payment of dues by rival BSE as the primary reason for the shortfall. In its December 2024 quarterly results, NSE Clearing, the exchange's unit responsible for clearing and settling its trades, reported a shortfall of Rs 176.65 crore in its minimum liquid assets. The company informed Sebi in a letter dated January 9 that this deficit was primarily due to the non-receipt of Rs 312.37 crore in dues from BSE. An NSE Clearing spokesperson said its auditors flagged the outstanding payment issue in their third-quarter financial review. The outstanding amount pertains to "interoperability arrangements", the official said. "The company is yet to receive outstanding dues of over Rs 300 crore from BSE Ltd. NSE Clearing is communicating with BSE on this matter," the spokesperson added. The Securities and Exchange B

Govt's cash deficit eases after RBI takes aggressive liquidity measures

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

Despite CRR cut, liquidity deficit in banking system crosses Rs 2 trillion

This reduction in the CRR released primary liquidity of approximately Rs 1.16 trillion into the banking system

IIFL Finance facing liquidity crunch after gold loan business curbs: Report

"Banks are neither sanctioning new lines (of credit) nor disbursing from already sanctioned limits," the official at the company, who did not want to be named, said

Liquidity deficit narrows to less than Rs 1 trn as govt spending picks up

Liquidity may not improve immediately as tax outflows of around Rs 1.25 trn are scheduled in March, says one expert

Amid liquidity crunch, shorter-tenure govt bonds lag 'longer' peers

Investors have favoured longer-tenure government bonds, or g-secs, with insurance companies and pension funds leading the charge by stocking up on those with maturities of 30 years and more

RBI conducts 4-day VRRR auction as overnight rates fall below repo

Banks parked Rs 18,750 crore at the auction against a notified amount of Rs 50,000 crore at a weighted average rate of 6.49 per cent

India, China banks under pressure from different liquidity stories

The liquidity drought may be deliberate. Unlike Beijing, New Delhi has every reason to be sanguine about growth

RBI to conduct overnight VRR to infuse Rs 25,000 crore on Tuesday

In the preceding VRR auctions, the central bank received a significant response, with banks submitting bids ranging between 2.5 to 3.2 times the bidding amounts due to tight liquidity conditions

Banks bid Rs 3 trn against notified amount of Rs 1.25 trn in VRR auction

The deficit liquidity in the banking system widened to Rs 2.7 trillion on Thursday, according to data by the central bank

Advance tax payments push the banking system liquidity into deficit

"The estimates are that around Rs 90,000 crore to Rs 1 trillion will go out as goods and services tax (GST) outflow," a dealer at a primary dealership said

Banks park Rs 17,203 crore with RBI; liquidity pressure seen easing further

Banking system liquidity went in surplus mode on Thursday after being in deficit for three days

Private bank's CD issuances to stay strong amid liquidity tightening

RBI's August monetary policy review asked banks to maintain an incremental cash reserve ratio of 10%

Firms could raise funds via public issues in 2023 as cash tightens: Bankers

Corporates have traditionally preferred raising funds via private placements due to its ease, shorter execution time, and lower costs overall

Credit risk not being fairly priced in by banks, says SBI report

Credit demand at decadal highs and liquidity remains significantly downsized, says research

Moody's lowers Vedanta Resources rating to 'B3' implying high credit risk

Persistently weak liquidity, high refinancing needs triggers rating action

Top Headlines: Starlink services in India, partial treatment to EV makers

Start-ups manufacturing electric two- and three-wheelers have alleged they are not getting subsidies under the second phase of the FAME II scheme

Inflation could impact liquidity flowing into equities: IIFL Wealth Jt CEO

In a Q&A, Anirudha Taparia says investors should not be swayed by market momentum, and must find deep value by identifying robust long-term themes available at compelling valuations

Liquidity crunch likely to hit farm gate level procurement by FPOs

Experts say banks are still hesitant to lend to producers as there is no collateral