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Mumbai, May 28 (PTI) The first day of the liquidity easing facility initiated by the Reserve Bank drew an opposite response, with banks parking Rs 3,705 crore with the central bank and not borrowing from it, reflecting a comfortable liquidity position. The Reserve Bank on May 26 had announced a second liquidity adjustment facility (SLAF), to be open from today, to augment money supply to banks, which are facing huge demand for funds due to 3G spectrum auction and advance tax payment to the Centre. The SLAF, which started today, will go on till July 2. However, the timing of the auctions of the government securities has been changed to between 4.15 pm and 4.45 pm, from the earlier announced 4 pm to 4.30 pm. The Reserve Bank, till yesterday, had been offering only one such window to banks between 9.30 am and 10.30 am everyday to lend or borrow from it against G-secs. The apex bank manages daily money supply in the system through LAF. Under the second LAF, banks have been allowed to borrow or lend up to 0.5 per cent of their total deposits. However, the bankers do not seem to be too much worried over the perceived liquidity pressure in the face of an expected Rs 1-lakh-crore cash outgo due to the huge 3G licence fees, and advance tax payment. State Bank chief finance officer SS Ranjan has said the RBI''s step is a pre-emptive measure to ease any perceived liquidity pressure and that liquidity is adequate. Bank of Maharashtra chairman and managing director Allen CA Pereira, too, said the banking system is flushed with funds at present due to low credit off-take. The last date for 3-G spectrum is May 31, while advance tax for the first quarter of this fiscal could be paid by June 15.
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