Page 9 - Liquidity

Share of low-cost deposits falls as FD rates rise, banks' NIM may take hit

With RBI on monetary tightening path, liquidity has shrunk and interest rates have hardened, forcing banks to hike rates on term deposits in order to get funds for credit growth

Bank borrowings up 2x amid rush to fund credit growth, shows RBI data

As liquidity shrinks, lenders' reliance on short-term funding routes increases

AMCs line up differentiated target maturity funds amid stiff competition

Yield-to-maturity between 7.36% and 7.5% for these schemes with fixed tenure makes them attractive bet

India's decoupling from global capital market surprising: Mukul Kochhar

Country attractive for global investment because of 'visibility for high growth', says head of Institutional Equities, Investec India.

A healthy debate: The case for and against interest rate hike

Having raised policy rates to about 6 per cent, does India's Monetary Policy Committee need to do more? And, if so, is more front-loading warranted?

Listed firms managing liquidity challenges well, says India Ratings

Given the tightening liquidity conditions and higher cost of borrowings, corporates with a weak credit profile are likely to tap a loan against shares facility to meet their funding requirements

Will the primary market revival suck out secondary market liquidity?

As market sentiment turns positive for India, 10 firms are looking to raise Rs 9,000 cr via IPO over the next 45 days. Will the primary market activity suck out liquidity from the secondary markets?

Top Headlines: RBI's liquidity infusion; Google fined Rs 936 crore by CCI

Walmart Inc-backed Flipkart is considering raising $2 billion to $3 billion at a valuation of more than $40 billion to expand its product range in India and challenge rivals

RBI's liquidity infusion largest since April 2019 as surplus cash dries up

Lack of repo suggests RBI tolerance of higher money mkt rates: Analysts

Andhra, Telangana, Punjab frequently use RBI's short-term liquidity windows

: Andhra, Telangana, Rajasthan and Punjab along with three north-eastern states are repeatedly using the Reserve Bank's special short-term liquidity windows instead of market borrowings, indicating their serious cash imbalances, says a report. The north-eastern states which are over and again using these facilities are Manipur, Mizoram and Nagaland. The central bank offers three short-term liquidity windows -- special drawing facility (SDF; for 5 working days), ways and means advances (WMA, for 5 working days) and over draft (OD, for 14 working days) facilities to states to tide over their liquidity needs. One of the main reasons for the states to use these windows is the cheaper pricing than market borrowings. Till August, states have availed SDF facility at an average rate of 3.2-4.2 per cent, while state bonds are priced at 7.8 per cent or more. A recent RBI study has identified 10 "vulnerable states" in terms fiscal management -- Andhra Pradesh, Bihar, Haryana, Jharkhand, Keral

Banks offer over 3-year high interest rate to raise funds through CDs

Call mkt rates at higher end of rate corridor as liquidity shrinks rapidly

RBI's currency intervention ends up hurting rupee carry trade: Analysts

The Reserve Bank of India's currency intervention is making the rupee less attractive for carry traders, analysts said.

India's real rate shouldn't be more than 1%: MPC member Ashima Goyal

In a Q&A, she says the interest differential with US does not matter so much because India has caps on interest sensitive inflows. Overseas investment is a very low share of the country's debt market

Liquidity slips into deficit on high credit growth, festival loan demand

Banks face pressure to raise deposits; weighted average call rate highest in 3 years

Rupee fluctuations not a factor for MPC's consideration, says RBI

'Net LAF continues to be in surplus for the past two years, except for 2-3 days when because of SLF for the primary dealers it became deficit'

Banks can boost liquidity by drawing down on CRR: RBI governor Das

The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs

Banks increase interest rates on bulk deposits as liquidity tightens

Loan, deposit growth gap at 10-year high

Top Headlines: Fed's 3rd big hike, liquidity slides into deficit, and more

Federal Reserve officials raised interest rates by 75 basis points for the third consecutive time and forecast they would reach 4.6% in 2023

Liquidity slides into deficit for first time in over 3 years: RBI data

Days of easy money over as credit growth rises

RBI, bond market players discuss liquidity strategy as surplus dwindles

RBI asked for mkt views on BoP, impact of 75-bps rate hike by US Fed