Page 9 - Liquidity

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

HDFC Bank set to meet reserve ratio requirements post merger: Report

The $40 billion merger, announced last April, is expected to conclude by July, HDFC Bank's Chief Financial Officer Srinivasan Vaidyanathan told analysts at a conference call on Saturday

Share of low-cost money in bank deposits dips in FY23 amid clamour for FDs

Ease of movement of funds on digital platforms and deployment of money by businesses from current accounts also played a role in pruning the share of CASA money

Vedanta unit's ability to raise loans reduces liquidity risk for group: S&P

Natural resources group has debt servicing obligations of about $3 bn

Sebi paves way for Rs 33,000-crore 'backstop' for debt mutual funds

Sebi told reporters that chosen debt MFs will contribute 2 basis points of their assets under management towards the fund

As liquidity tightens, RBI injects Rs 1 trn for largest infusion in 4 years

Tighter liquidity conditions have resulted in sharp rise in money market rates

Credit Suisse $54 billion lifeline offers limited respite to global banks

The European banking index, initially rose following the intervention, but was virtually flat by 1130 GMT

Bank borrowings jump 64% in FY23, cross Rs 5 trillion mark for first time

Reliance on short-term funding increases as bank borrowings average Rs 4.2 trn

RBI repo undersubscribed but banks brace for volatile month-end liquidity

Central bank expected to conduct more variable rate repos towards end of financial year

Commercial paper rates may rise further as liquidity dries up, say analysts

Earlier this week, state-run financial institution NABARD raised three-month funds at 7.65%, which was over 40 basis points higher than what it paid for a similar paper a month ago

T-bill yields continue to surge, at the same level as 10-year bond

Around a year ago, the yield on the 10-year bond was more than 220 bps higher than that on the 364-day T-bill

Liquidity likely to veer towards neutral after three years of surplus

Future scenario hinges on forex market, govt spending, credit growth

No refinancing, liquidity issues, says Adani to calm jittery investors

Adani has rejected the concerns in detailed rebuttals of the Hindenburg report's allegations and criticism that it had unsustainable debt

Tight liquidity makes Adani Group dollar bonds a tough buy or sell

Most of some $8 billion of Adani firms' outstanding bonds fell below the 70 cents on the dollar mark - which is seen as distressed territory - after the Hindenburg report

MPC's optimistic growth outlook augurs well for credit demand

The MPC's optimistic growth outlook for H2 FY2024 augurs well for the credit demand for the banking sector as well as the lenders, said Karthik Srinivasan of Icra

Quick settlement

T+1 will increase liquidity