The RBI's active intervention in the foreign exchange market to avoid sharp decline in rupee against the dollar has been weighing on the banking system liquidity
The RBI said it will infuse over $21 billion of rupee liquidity into the banking system to ease lending conditions and support economic growth
The central bank announced open market operations (OMO) auctions to purchase government securities worth Rs 1 trillion in two tranches of Rs 50,000 crore each on March 12 and March 18
Since mid-January, the Reserve Bank of India has infused funds to counter a sharp decline in liquidity caused by its aggressive intervention in the foreign exchange market, among other factors
The Indian banking sector's NIM remains healthy at 3.5 per cent as of the first half of FY25, although it has declined from about 3.6 per cent in FY24, partly due to the upward repricing of deposits
"Trade-offs between stability and efficiency will be kept in mind"
The RBI announced the formation of the working group, to be headed by R S Ratho
It has been the endeavour of Reserve Bank to provide as much liquidity as is required
Forward premiums dip, rupee slides, and bond yields fluctuate
They say central bank is focused on durable relief rather than ad hoc support
Smallcap, midcap stocks continue to reel from selling pressure
The liquidity deficit stood at Rs 2.87 trillion on Wednesday, according to the latest data from the RBI
Move to ease liquidity concerns; set to begin with Rs 50,000 crore
Certificate of Deposit rates increased by 20-30 basis points across tenures during the same period
This reduction in the CRR released primary liquidity of approximately Rs 1.16 trillion into the banking system
Indian companies' advance tax payments, which come due in the last month of each quarter, are adding to the liquidity strain
Analysts said that the liquidity improved on the back of government spending; however, it is expected to fall into deficit mode soon due to tax outflows
There is a very high chance that the actual fiscal deficit target will undershoot even 4.9 per cent of GDP as there was a decline in government expenditure during the general elections
Vedanta Resources Ltd has said it paid USD 869 million to bondholders in October to redeem bonds three to four years ahead of maturity. The repayments are part of a larger liquidity management exercise under which Vedanta Resources Finance II PLC (VRF) -- a wholly-owned subsidiary of Vedanta Resources Ltd -- is repaying bonds with a higher interest rate to save on interest costs. VRF has repaid USD 869 million to bondholders holding 13.875 per cent bonds due in 2027 and 2028, respectively. According to the company's various Singapore exchange filings, the payments were made in multiple phases during October. For the 13.875 per cent bonds due in 2027, the company repaid USD 470 million, as per filings on October 4 and October 9. As per VRF's exchange filing, with the repayment on October 4, the 2027 bonds have been fully redeemed and are no longer outstanding. Similarly, the company has repaid USD 399 million to those holding its 13.875 per cent bonds due in 2028. As per a Septem
Mumbai-based lender's overall deposit growth better than other commercial banks