Custom Search

Tuesday, April 2, 2013

Banks borrow most from RBI on last day of FY13

Banks borrowed a record Rs1.81 lakh crore from the Reserve Bank of India, in the last working day of the financial year ended March 31, 2013. This was the highest daily borrowing for the year as banks sought funds to meet their year-end balance-sheet requirements and the government's cash balances with the Reserve Bank ballooned.

Liquidity in the system remained tight throughout March, as reflected in the borrowing data. According to the RBI data, banks borrowed Rs1.81 lakh crore through the repo window. Banks also resorted to borrowing from the marginal standing facility (MSF), where banks borrow at 1% more than the repo rate, which is currently at 7.5%. Banks borrowed Rs7,000 crore through the MSF window.

"Cash balances with Reserve Bank of India were huge last month," said Arun Khurana, head, global markets, IndusInd Bank. "Once this money comes into the system, the liquidity should improve."

Central government's cash balances with RBI stood at Rs87,835 crore on March 22.

Source: Economictimes


Post a Comment

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site