Page 6 - Liquidity

Ind-Ra downgrades Sterling and Wilson Renewable Energy in 'default' grade

Ind-Ra highlighted concerns that the company's operating cash flows would not be adequate to address its upcoming debt obligations in October 2023

Inclination towards small-cap must be seen with risks linked: Sebi WTM

The Sebi whole-time member also asked the MF industry to keep robust checks on its commissions for distributors to avoid a perverse incentive system or malpractices and missellings

Banks turning to SDF over liquidity mismatch and 24x7 RTGS facility

Banks earn less for keeping money in SDF, at 6.25 per cent, while call money rates hover around 6.70 per cent

Kerala's liquidity strained, seeks Centre's intervention over borrowing cap

Kerala Finance Minister K N Balagopal on Saturday said the state's liquidity position was severely stressed due to the reduction in the annual borrowing limit and sought the intervention of Union Finance Minister Nirmala Sitaraman into the issue. In a letter written to the union finance minister, Balagopal said the liquidity stress got aggravated specifically because of the cut in the annual borrowing ceiling for the financial years 2022-23 and 2023-24. He said Kerala has been relying on its own sources of revenue for meeting the expenditure during recent years, unlike many other states. Balagopal said the decision of the Union Government to include the borrowing of institutions like KIIFB (Kerala Infrastructure Investment Fund Board) and lower the annual borrowing limit of the state with retrospective effect was causing severe liquidity stress for Kerala. "I write this letter to invite your kind attention to the issue of liquidity stress being faced by Kerala due to the reduction

RBI MPC keeps repo rate unchanged, signals tight liquidity measures

Rate-setting panel considers high inflation as risk to macroeconomic stability and sustainable growth, says Shaktikanta Das

CD issuances in September surged to FY24 high amid tight liquidity

The deficit liquidity neared Rs 1.47 trillion on 19 September, the highest since 29 January 2020, when the banking system liquidity deficit went up to Rs 3 trillion

India's bond index inclusion set to test RBI's liquidity, FX management

"So as and when passive investors encounter tax implications, they will think twice," the report said

RBI infuses liquidity as banking system faces highest deficit since 2020

Market analysts predict that the disbursement of Rs 25,000 crore as the second tranche of Incremental Cash Reserve Ratio (I-CRR) will be insufficient to ease liquidity strains

India Inc faces costlier borrowing as corporate-govt yield gap widens

The yield spread between the AAA-rated 5-year corporate bond and the 5-year government bond narrowed by 7 basis points in August

OIS rates at near term peak; uncertainty around rate view continues

While the one-year overnight indexed swap rate has been technically reflecting a 25-basis-point hike by the Monetary Policy Committee, market participants believe that it may fade soon

Liquidity continues to be in deficit, banks expect RBI repo auction

Liquidity in system went into deficit mode on Tuesday for the first time in this Financial Year

Incremental CRR move to help suck out Rs 1 trn of excess liquidity: Das

Reserve Bank Governor Shaktikanta Das on Thursday said the move to impose a 10 per cent incremental cash reserve ratio for a limited period will help suck out Rs 1 lakh crore of excess liquidity from the system. The move, announced along with the bi-monthly policy review, was the best option under the current circumstances and there is enough liquidity in the system for the banks to continue their lending operations, Das told reporters. While announcing the move, Das had said the return of Rs 2,000 notes since May 19 this year, has led to instances of excess liquidity for which the move was being introduced. Replying to a question on whether it will also include the impact of the merger of HDFC with HDFC Bank, Das said the move is applicable to all scheduled banks. Das said the recent spike in consumer price inflation is driven by food inflation and is expected to be short-lived if we were to go by past instances. However, if these idiosyncrasies persist and become generalised, th

Polygon-backed Davos Protocol raises Rs 10 crore in TVL in two months

The decentralized stablecoin claims to differentiate itself through transparency and decentralization, backed by various crypto assets managed on-chain

Banks wary of liquidity on ahead of the advance tax outflow and GST

VRRR mop-up equals to value of 85% of Rs 2000 notes returned

RBI's efforts to drain liquidity signal its intent to quash inflation

The RBI drained 508.7 billion rupees from the banking system on June 2 through a 14-day reverse repo auction, and it removed another Rs 666.4 billion via a four-day operation on June 5

Bankers await signs on RBI's liquidity approach amid persisting disconnect

"Banks are not parking funds with the RBI because they are unsure about how long the surplus liquidity will last," said Soumyajit Niyogi

Liquidity surplus crosses Rs 1.75 trillion-mark on higher govt spending

The process to withdraw the Rs 2,000 note started from May 23

Liquidity of banks to improve as Rs 2,000 notes being deposited: Report

The liquidity in the banking system is expected to improve to more than Rs 1 lakh crore in days to come if the current market trend of 80 per cent of Rs 2000 notes being deposited holds, a report said. "Even if a fraction of these trends are extrapolated at All Scheduled Commercial Bank's (ASCB) level, then the banking system liquidity is likely to increase significantly compared to our earlier estimates of Rs 1 trillion bulge in deposits," said the SBI report 'Ecowrap' said. However, it said, this is based on the current available information and might change depending on further data. The bottom line, however, is that the interest rate cycle might have peaked decisively, it said. "As per market trends, around 80 per cent of the total Rs 2000 notes received are deposited and the rest 20 per cent are exchanged for smaller denominations," it said. The Reserve Bank of India (RBI) on May 19 announced the withdrawal of Rs 2000 denomination banknotes as part of its currency management

Call rates, bond yields ease on expectations of improved liquidity

Yield on 10-year government bond closes below 7%

Banks express concern over high overnight funding costs, ask for RBI's help

Indian banks put forth their concerns over elevated overnight rates at a money markets association meeting last week and have informally asked the Reserve Bank of India to help manage liquidity