Banks geared up to tackle any liquidity challenge; bullish on FMCG prospects: Mahantesh Sabarad

economictimes.indiatimes.com:

Mahantesh Sabarad, Independent Market Expert, says the RBI is now worried more about the liquidity conditions that most of the private banks maintain. Now it is likely to bring in the next round of reforms in terms of the LCR exposure. Huge banking transactions are happening online and there are concerns related to the security of online transactions and liquidity positions of banks because the systems can get hit by a huge liquidity surge.

Intraday the banks look slightly under pressure, but over the week it seems they have done pretty well. But, it is the other way around. Over the week, banks seem to be under pressure. Intraday they have done well. What is your opinion on the RBI draft circular that we saw coming in for banks? What kind of impact are you foreseeing for the banks?
Mahantesh Sabarad: Primarily the RBI in the past was very concerned about the asset quality of the banks and therefore, we saw a big compression in terms of NPAs gradually easing out of the system. That done, the RBI is now worried more about the liquidity conditions that most of the private banks maintain.

Now it is likely to bring in the next round of reforms in terms of the LCR exposure. Particularly huge banking transactions are now happening online and there are a lot of concerns related to the security of online transactions, concerns related to liquidity positions of banks because the systems can get hit by a huge liquidity surge. So, this seems to be a step in the right direction but I foresee that most of the banks are geared