SBI report says banks inadequately pricing risks as they scurry to garner deposits and lend more

Liquidity crunch is primarily because the Reserve Bank has been sucking out funds from the system as it fights to tame inflation which has been much above its band of 4 per cent for the past 10 months of the year. This has prompted the RBI to frontload its inflation fight by increasing the policy rates by 190 basis points to pre-pandemic levels since the war on Ukraine began.

from Banking/Finance-Industry-Economic Times https://ift.tt/U6nojsc