Banks cut CD borrowings by Rs 1.3 lakh crore in a month amid RBI liquidity boost
Indian banks significantly decreased the issuance of certificates of deposit, lowering outstanding amounts by ₹1.3 lakh crore. This change followed a boost in liquidity from the Reserve Bank of India's foreign currency deposit scheme. As a result, the need for short-term funding decreased, leading to lower call rates. Fresh CD issuance slightly increased, but rates fell...
Key Takeaways
- Indian banks significantly decreased the issuance of certificates of deposit, lowering outstanding amounts by ₹1.3 lakh crore.
- This change followed a boost in liquidity from the Reserve Bank of India's foreign currency deposit scheme.
- As a result, the need for short-term funding decreased, leading to lower call rates.
Indian banks significantly decreased the issuance of certificates of deposit, lowering outstanding amounts by ₹1.3 lakh crore. This change followed a boost in liquidity from the Reserve Bank of India's foreign currency deposit scheme. As a result, the need for short-term funding decreased, leading to lower call rates. Fresh CD issuance slightly increased, but rates fell notably, affecting overall funding costs.
Original Publisher Attribution
This summary was curated from Economic Times.