Citing the increasing prevalence ( mobile and internet banking in India, which enables depositors to easily withdraw their funds, the central bank has suggested an additional 5 per cent run-off factor for retail deposits with digital banking facilities. Analysts predict that the potential impact on LCRs, should these norms be enacted, could be as severe as a 20-30 percentage point reduction.
"Banks do carry buffers over LCR norms, but to maintain current levels, they may need to increase deposit growth/trim loan growth, which could affect earnings by 4-10 per cent, with a higher impact on PSU banks," Jefferies said in a note to its clients.
According to analysts, banks with an LCR exceeding 130 per cent are relatively comfortable, though not many lenders boast such robust ratios.
Bu hikaye Business Standard dergisinin July 27, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin July 27, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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