Key Points
Bank borrowings shot up to their highest level in eight months in the fortnight ended June 16 as outflows on account of quarterly advance tax payments sent lenders flocking to the money market for funds...
In the week ended June 16, bank borrowings were at Rs 5.05 lakh crore, the highest sum since the fortnight ended October 21, Reserve Bank of India data showed..
The figures for the week ended June 16 marked the first time since early April that bank borrowings topped the Rs 5 lakh crore mark...
Figures listed under the borrowings section for scheduled commercial banks in the fortnightly RBI data largely represent short-term funding routes, such as interbank repo operations and the use of tri-party repos, analysts said...
However, in July so far, liquidity in the banking system is back to a large surplus due to heavy government expenditure, market participants said.. Consequently, money market rates have eased significantly, with the RBI consistently mopping up excess funds through variable rate reverse repo operations..
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