Banks’ daily borrowing from RBI drops as liquidity improves

MUMBAI, APRIL 8:  

With the liquidity situation easing since the beginning of this month, banks’ borrowing from the Reserve Bank of India is expected to come down considerably, say senior bank treasury officials.

That the liquidity situation has improved is underscored by the fact that banks’ borrowing at the central bank’s liquidity adjustment facility window has come down over the last week, from Rs 1,20,965 crore on April 2 to Rs 28,800 crore on April 5.

Though banks collectively borrowed Rs 1,09,365 crore on Monday, bankers say the liquidity trend is towards easing as outflows on account of advance tax payment by companies last month is expected to come back into the banking system.

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