|
New Delhi: India is going to continue its current trend of borrowing Rs 150 billion a week at least till the end of September, according to a senior Finance Ministry official.
The weekly borrowing in the second half would depend on the Reserve Bank of India’s assessment of liquidity. An anonymous official informed, “Liquidity is comfortable now.”
A senior dealer at a foreign bank said, “There is demand for debt and even though there are fears of a front-loaded borrowing, buying is seen at every dip.”
Cash levels in banks have been in excess due to slower loan growth amid an economic downturn. Banks are required to invest at least 24% of their deposits in government bonds.
|
