Market News
Indian lenders clamor for durable liquidity infusion from central bank - BLOOMBERG
By Dharamraj Dhutia and Nimesh Vora
- Summary
- Bankers meet central bank officials, raise liquidity tightness concerns
- Liquidity in deficit since mid-December, daily average at 1.50 trillion rupees
- Bankers suggest measures like FX swaps, bond purchases, CRR cuts
MUMBAI, Jan 10 (Reuters) - Indian lenders have asked the central bank to infuse durable liquidity into the banking system in the wake of the significant dip in a key measure of liquidity, six treasury officials said.
A select set of market participants met Reserve Bank of India officials late on Thursday, raising concerns over the persistent tightness in liquidity conditions.
The tightness in liquidity, if sustained, is likely to keep borrowing rates of banks high, potentially impacting lending rates at a time when India's economic growth is cooling down.
