IMPROVING LIQUIDITY, FALLING CDs - APRIL 2024
- Credit Rating Agency in India
- Economy Overview
- IMPROVING LIQUIDITY, FALLING CDs - APRIL 2024
During March 2024, CDs of the value of ?1.2 lakh crore were issued by banks as against only ?19,850 crore in April (till April 2021). There is pressure on banks to bolster their balance sheets and reach the targeted business levels in March. Hence a correction from the high base of March is not all that surprising.
There was pressure on liquidity in March 2024 but this pressure eased in April 2024 for various reasons explained above with the result that liquidity surplus in the second week of April reached ? 80,000 crore. There were also liquidity infusing factors, such as, government spending, maturity of forex swap and buoyant foreign portfolio flows.