Treasury money is decreasing..? New problem for India?

Treasury money is decreasing..!? New problem for India?

Although global recession fears are high, India’s growth prospects are much better than those of major economic nations. But due to overseas market conditions and increase in central bank interest rates, the value of Indian rupee, inflation, financial condition and foreign exchange reserves are affected. In this situation, a significant problem in Indian banks has developed. The Indian corporate market continues to grow despite inflation, due to which the demand for credit in the corporate market is very high. Although this is a great opportunity for banks, a new problem has arisen. Market analysts have predicted that Indian banks are more likely to face liquidity shortages as they receive more loans than deposits.
BANK OF INDIA’ target=”_blank” title=”reserve bank of india-Latest Updates, Photos, Videos are just a click away, CLICK NOW’>reserve bank of india raises interest rate interest in reducing excess liquidity in the market to reduce the country’s inflation, and now the demand for credit has increased, causing a liquidity crisis in the bank coffers. It is important to know that this liquidity crisis has no risk or impact on people’s deposits. Over the past two years, banks have reduced their cash reserves and short-term money. The banks used some of this money for the development of their assets. In this situation, banks began to collect deposits and raise new funds. In particular, small and medium banks buy repo rate loans from the RBI to offset market demand. Based on data published by bank OF INDIA’ target=”_blank” title=”reserve bank of india-Latest updates, photos, videos are just a click away, CLICK NOW’>reserve bank of india, as the October 21, Banks’ credit volume grew by 17.9% to Rs 128.9 lakh crore in the past year, the highest annual growth rate in the past 9 years At the same time, the amount of bank deposits increased by only 9.5% to Rs 172 lakh crore. Careedge said in its report that the most important reason for the increase in loan demand in India is the increase in demand for personal loans and business working capital. During this September quarter, private banks collectively made a profit of Rs 33,165 crore. This is around 67% more than Rs 19,868 crore in the corresponding September quarter of the previous financial year. . It should be noted that only Bank of India – Latest Updates, Photos, Videos are just a click away, CLICK NOW’ > State Bank of India has received more than 50% of this amount.

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