Page 6 - Liquidity

RBI conducts two VRRR auctions again to balance liquidity within system

Market participants are attempting to address the uneven liquidity and absorb the excess liquidity resulting from government spending, stated a dealer at a primary dealership

RBI's liquidity drain signals tight cash conditions may stay: Economists

'April policy would be a better time to take a fresh view on liquidity situation for FY25'

Credit growth of banks could moderate in FY25 on tighter liquidity: S&P

S&P Global Ratings on Monday said strong credit growth of Indian banks could moderate to 12-14 per cent in the next fiscal if deposit growth remains tepid. "Deposit growth continues to lag credit for the Indian banks we rate, leading to tight liquidity conditions," S&P Global Ratings credit analyst Nikita Anand said. Banks may be compelled to look for wholesale funding, S&P said, adding that higher costs of such funding could further strain margins and hurt profitability. Rising cost of funds and potential rate cuts in fiscal 2025 will squeeze net interest margins, it added. "Liquidity is tightening for Indian banks. The sector's strong credit growth could moderate to 12-14 per cent in fiscal 2025 if deposit growth remains tepid, compounded by higher deposit costs and competition for funds," S&P said in a report titled 'Tight liquidity shackles Indian banks' robust credit growth'. S&P expects the share of unsecured personal loans in the banks' total loan book to ...

Mahindra Finance Q3 results: Net profit down 12% due to higher credit costs

The net profit of the company stood at Rs 629 crore in Q3 FY23. However, sequentially, the profit increased by 135 per cent from Rs 235 crore in Q2 FY24

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

Blackstone's first private equity fund for rich individuals gets $1.3 bn

The cash pile, disclosed in a filing Monday, underscores the intensifying race among alternative investment firms to court private wealth as key sources of institutional money dry up

RBI keeps all options open to manage liquidity

Inflation and central bank policy rates seem to have peaked for most countries, while the pace of economic activities remains varied across economies

Buffett owned Berkshire Hathaway's cash at record $157 bn after deal slump

The hoard - which Berkshire has largely parked in short-term Treasuries - surpassed the previous high set two years ago, the Omaha, Nebraska-based firm said on Saturday

State-run banks to lower bond purchases as liquidity tightens: Officials

Bond yields have spiked since Oct. 6, when the central bank said it will keep monetary policy restrictive and sell bonds to manage banking system liquidity. Bond prices move inversely to yields

India Ratings downgrades Vedanta's long term rating from 'AA' to 'AA-'

Ind-Ra consistently takes a consolidated perspective of VDL and its subsidiaries, collectively referred to as the VDL group, owing to their intertwined strategic, operational, and financial ties

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