Systemic liquidity seen uneven as some banks continue market borrowing

Several banks in India have been borrowing from the market despite substantial foreign currency non-resident deposits inflow. This situation indicates that excess liquidity is not evenly distributed across the banking sector. Some banks experienced a significant rise in certificates of deposit while others shed expensive deposits. The inability to capitalize on FCNR deposits has led many banks to rely on costly market funding.

from Banking-Banking/Finance-Industry-Economic Times https://ift.tt/7GMf9BQ
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