Banking liquidity has declined to Rs 0.95 lakh cr from a peak of Rs 2.86 lakh cr: Union Bank report
Union Bank of India. It says the banking liquidity has fallen to Rs 0.95 lakh crore as on 28th August from a peak of Rs 2.86 lakh crore.
The report highlights that the decline in liquidity continued throughout this month. At the beginning of the month, on August 2, 2024 banking liquidity was at Rs 2.56 lakh crore which has reduced to Rs 1.55 lakh crore on August 16th and now at Rs 0.95 lakh crore on August 28.
The report stated, «As of 28th Aug, the system liquidity was in surplus, to the tune of Rs.0.95 lakh crore, easing from the peak of Rs.2.86 lakh crore earlier this month.»
This downward trend in banking liquidity comes despite repeated appeals by the Finance Minister and the RBI Governor to banks to take measures to boost liquidity in the system.
The continuous reduction in liquidity raises concerns, it could have broader implications for economic activities
Union Minister for Finance, Nirmala Sitharaman during her review meeting with the Public Sector Banks (PSBs) this month deliberated on deposit mobilisation issue, the Union Finance Minister stated that while the credit growth has picked up, the mobilisation of deposits could further be improved to fund the credit growth sustainably and asked banks to make concerted efforts to garner deposits by conducting special drives.
Sitharaman also advised PSBs to have better relationships with their customers for efficient customer service delivery. She also urged Banks to reach out and connect with their customers, especially in rural and semi-urban areas.
On
