The government's cash balances with the central bank stood at about ₹3.8 trillion on Thursday, and bankers hope the situation will improve when government spending picks up, and money finds its way into the banking system.
Liquidity deficit stood at ₹2.6 trillion as on 22 February, slightly lower than ₹2.8 trillion on 21 February, as per data from Bloomberg, but has nonetheless stayed in deficit since 8 December.
"Because credit offtake is quite strong, banks are managing the shortfall in deposits with short-term borrowings," said Arun Bansal, executive director, IDBI Bank. "Banks are dipping into their SLR securities-government securities and other sovereign papers and given that everyone is sitting on surplus SLR, it can be used in such situations to borrow funds through tri-party repos at 6.3-6.8% and at 6.75% from the marginal standing facility (MSF) window," Bansal added.
Bu hikaye Mint Mumbai dergisinin February 24, 2024 sayısından alınmıştır.
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Bu hikaye Mint Mumbai dergisinin February 24, 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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