Liquidity

Banking system liquidity surplus touches Rs 1 trn, shows RBI data

Analysts said that the liquidity improved on the back of government spending; however, it is expected to fall into deficit mode soon due to tax outflows

Impacting growth, liquidity management: Shifting sands of fiscal policy

There is a very high chance that the actual fiscal deficit target will undershoot even 4.9 per cent of GDP as there was a decline in government expenditure during the general elections

Vedanta Resources repays $869 mn in Oct to redeem bonds due in 2027, 2028

Vedanta Resources Ltd has said it paid USD 869 million to bondholders in October to redeem bonds three to four years ahead of maturity. The repayments are part of a larger liquidity management exercise under which Vedanta Resources Finance II PLC (VRF) -- a wholly-owned subsidiary of Vedanta Resources Ltd -- is repaying bonds with a higher interest rate to save on interest costs. VRF has repaid USD 869 million to bondholders holding 13.875 per cent bonds due in 2027 and 2028, respectively. According to the company's various Singapore exchange filings, the payments were made in multiple phases during October. For the 13.875 per cent bonds due in 2027, the company repaid USD 470 million, as per filings on October 4 and October 9. As per VRF's exchange filing, with the repayment on October 4, the 2027 bonds have been fully redeemed and are no longer outstanding. Similarly, the company has repaid USD 399 million to those holding its 13.875 per cent bonds due in 2028. As per a Septem

YES Bank's CASA ratio improves in Q2 FY25, loan book grows over 13%

Mumbai-based lender's overall deposit growth better than other commercial banks

NBFCs turning to alternative funding sources amid slower bank loans

This shift has been spurred by changes in banking regulations, making it more difficult for NBFCs, especially those with lower credit ratings, to secure bank funding

Banking system liquidity improves to 1-month high on back of govt spending

"Government spending is the reason for the rise in liquidity. It might improve further but there will be some action by the RBI to manage liquidity," said Indranil Pan, chief economist, YES Bank

SBI to focus on neglected, small-ticket deposits to boost liquidity: MD

The lender will focus on accounts under a government scheme called 'Jan Dhan', or people's wealth, that provides access to various financial services to low income groups, Tewari said

India's short-term borrowing costs decline to lowest in two years

The yield on the 364-day treasury bill dipped to 6.7240 per cent in an auction on Wednesday, the least since September 2022

Banking system liquidity improves to touch 1-yr high; overnight rates ease

According to Bloomberg data, the weighted average call rate also declined 5 bps on Monday to 6.44%

Deposit growth trailing credit growth may cause liquidity issues: Das

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday warned banks of "structural liquidity issues", if deposit growth continues to trail credit growth. Das also flagged more issues on the unsecured credit front, pointing out that banks are having higher ceilings for such risky credit despite the portfolios being large enough, and asked them to be prudent and avoid exuberance. Urging banks to maintain a "reasonable balance" between credit and deposit growth, Das also mentioned that a good part of household savings that used to come into the banking system as deposits is now going into other instruments like mutual funds. "Credit growth should not run ahead of deposit growth by miles. More so when banks are required to maintain CRR, SLR, LCR," Das said during his address at a summit organised by Financial Express here. "Deposit mobilisation has been lagging credit growth for some time now. This may potentially expose the system to structural liquidity issues," he added. He

IPO-bound Swiggy announces fifth ESOP liquidity programme worth $65 million

So far, the company has cumulatively enabled over Rs 1,000 crore of ESOP liquidity over the five events, benefiting over 3,200 employees

India dedicated flows slow to 12-week low, led by outflows from ETFs

India dedicated flows finally slowdown to 12-week low of $153mn this week after average weekly inflows of $1bn post-election results.

Liquidity surplus improves to two month high on govt spending, redemption

Consequently, the yield on 3-month and 6-month treasury bills fell by 2 basis points, whereas that on 364-day bills fell by 1 basis point compared to last week

Technical glitch halts RBI's liquidity management system: Explained

This is the first glitch experienced by the ASISO system in four years since its installment by the RBI

Capital requirements will remain high for Indian companies: Moody's

Moody's Ratings on Thursday said capital requirements will remain high for Indian corporates as they go in for capacity expansion and inorganic growth spending. Moody's estimates that 16 of the 23 rated companies will require USD 70-100 billion of funding annually in the next two years for growth spending, refinancing requirements and shareholder payments. While improving domestic liquidity and companies' internal cash flows can cover a large portion of their capital needs, offshore funding will remain an important funding channel, it said. "Capacity expansion, inorganic growth spending, refinancing and working capital needs, along with shareholder payments, will keep capital requirements high for nonfinancial corporates in India," Moody's Ratings said in a statement. It said capital spending by non-financial corporates will remain high as they expand their capacities to cater to the strong consumption growth expected in the country, at a time when their capacity utilization is ...

China's PBOC pledges to ensure reasonably ample liquidity, credit growth

The People's Bank of China (PBOC) said it will make its monetary policy flexible, precise and effective and promote a moderate recovery in consumer prices

Cocoa prices recover after slumping 20% amid record low liquidity

July London cocoa futures on the ICE exchange fell nearly 15% on Monday for their largest one-day loss and then lost more than 10% at the market open on Tuesday

RBI conducts two-day VRRR as liquidity surplus nears Rs 1 trillion

Banks parked Rs 32,576 crore, against the notified amount of Rs 50,000 crore at a weighted average rate of 6.49 per cent at the auction

Certificates of deposit issuances by banks up 34% in FY24, hit Rs 9.56 trn

The top five issuers accounted for approximately 60 per cent of the total fundraising in February

Short-term rates decline amid strong variable rate repo auction demand

The liquidity deficit in the banking system widened to Rs 1.22 trillion on Monday, according to the latest data by the RBI