LIQUIDITY DEFICIT

"To a certain extent, the year-on-year rise in the bank borrowing numbers is a reflection of the merger between HDFC and HDFC Bank. But apart from that, it is clearly a reflection of the tightness in the liquidity and that was, to a certain extent, ...

Mukul Kochhar says growth will be structurally higher by a percent, percent-and-a-half and one factor is the current account surplus which should get us into a more stable economic growth cycle. I feel that the private capex cycle is going to be ver...

We expect the NDA government to sustain focus on capex-led growth around PLI, Roads, Ports, Aviation, Defence, Railways, and Green energy, given a 20 bps lower fiscal deficit in FY24 (Than RE), normal monsoons, and Rs 2.1 lakh crore dividend from RB...

I think basically we were the first bulls in PSU along with a few other domestic investors. And, at that point of time PSU valuations were mouthwatering. And I could not understand why other than a few of us in the industry, others did not find them...

RBI uses forex tools to inject cash into banking system ahead of large outflows due to advance tax payments, keeping borrowing costs low and increasing reserves without impacting inflation-fighting stance.

RBI Governor Shaktikanta Das announced the central bank's commitment to maintaining money market rates and borrowing costs through flexible liquidity management. The RBI will use various operations to manage liquidity, responding to foreign investme...

Budget 2024: A weaker majority for Prime Minister Narendra Modi's alliance may lead to increased welfare spending without the need for additional borrowing, potentially limiting a rise in bond yields, according to a senior executive at Kotak Mahindr...

The RBI's challenge for the year may not be inflation but liquidity. Government spending resumption and overseas fund flows complicate monetary policy effectiveness.

Saudi Arabia may announce a landmark secondary share offering in oil giant Aramco later on Thursday, pending final approval from Crown Prince Mohammed bin Salman, people with knowledge of the matter said.

The shortfall of funds has pushed up the weighted average call rate (WACR), which represents banks' overnight cost of borrowing and functions as a determinant of other borrowing costs in the economy too. On Wednesday, the WACR closed at 6.75%, the s...

The Reserve Bank of India (RBI) has transferred a record surplus of Rs 2.1 lakh crore to the central government for FY’2023-24, exceeding expectations. This windfall, largely from interest income on overseas securities and income from LAF operations...

India's federal government spending is expected to remain sluggish for several more months, leading to potential measures to inject liquidity into the banking system. Recent actions include three short-term securities buybacks and alterations in tre...

The Reserve Bank of India (RBI) has responded to tight liquidity conditions in the banking system by announcing a significant reduction in the government's treasury bill sales and introducing a new selection of bonds for the Centre's buyback operati...

The central bank will issue a draft circular in this regard for comments of all stakeholders. Under the liquidity coverage ratio (LCR) introduced post the global financial crisis, banks are currently required to maintain a stock of high quality liqu...

Numerous rounds of variable rate repos by the Reserve Bank of India and its recent strategy in foreign exchange markets have also contributed to easing liquidity conditions following a prolonged stretch of large cash deficits in the banking system, ...

Financial conditions have tightened the economy with liquidity going into a deeper deficit putting upward pressure on short-term rates, according to a research report by CRISIL Market Intelligence and Analytics. The report released during the month ...

Between April and November 2023, the daily average value of market repos was ₹1.46 lakh crore, the highest on record, and 15% higher than the average for 2022-23, according to the latest data published by the Clearing Corporation of India (CCIL).

The RBI has been maintaining tight liquidity to curb inflation, a politically sensitive metric that needs restraining, especially as the most populous country embarks on the biggest democratic exercise in the world to choose its government for the n...

"Shortage of funds will only get exaggerated in the last quarter (of the fiscal year), which ideally also sees the strongest credit growth," a senior treasury official at a private bank said. "We expect frequency of such repos to increase."