CRR
Why bank stocks are an oasis for investors in a desert of chaos
Banking and financial services have outperformed in 2025, with Bank Nifty and Nifty Financial Services gaining over 8% and 12%. Strong fundamentals, supportive RBI policy, improving asset quality, and attractive valuations are driving renewed investor interest and sustained momentum.
ICICI Bank Q4 Preview: PAT may jump up to 15% YoY on robust loan growth; NII growth seen at 7-11%
ICICI Bank Q4 preview: The lender’s net interest income (NII)—the gap between interest earned and interest paid during the quarter—is expected to grow by 7.6% to 11% compared to the same quarter last year, likely falling between ?20,543 crore and ?21,170 crore.
Follow the shopper: 6 reasons why consumption stocks could be the star act of FY26
India's consumption theme is poised for a strong FY26, fueled by tax cuts, easing monetary policy, and a promising monsoon. The Rs 1 lakh crore income tax relief and potential 8th Pay Commission implementation are expected to boost spending.
Debt market snapshot: RBI’s liquidity boost among other factors drive March movement
This intervention led to a softening in market rates. The 10-year government bond yield declined by 15 basis points (bps) to 6.58% in March from 6.73% in February.
India playbook 2025: Domestic headwinds being addressed; global uncertainties remains a concern
Global equity markets dropped 5–25% in Q1 2025 amid Trump’s tariff policies and economic slowdown. Indian indices saw short-lived gains in March but reversed due to renewed global pressures. Despite challenges, local reforms and inflows offer hope.
RBI to boost banking system liquidity with Rs 40,000 crore OMO and repo operations
The Reserve Bank of India (RBI) is set to inject liquidity into the banking system through open market operations (OMO) and variable rate repo (VRR) auctions this month. These measures aim to achieve a system liquidity surplus of 1% of net demand and time liabilities (NDTL) and to offset the impact of GST outflows.
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Bank margins may get squeezed in gap between loan & deposit rates
About 60% of commercial bank's loans are pegged to external benchmarks, like the policy repo rate that was lowered the second time in as many months to 6%. For private sector banks, the share of external benchmarks lending rate (EBLR) loans-or advances linked to repo rate-is 85.9%, while for public sector banks it is 44.6%. Effectively, the margins of private banks are expected to be impacted more than PSU banks.
RBI’s cautious accommodative turn: Policy room intact amid global uncertainty
The RBI cut interest rates by 25 bps and adopted an accommodative stance amid global uncertainty. With lowered growth and inflation projections, the central bank remains cautious yet flexible. Its future actions depend on evolving global trade tensions, particularly China's currency moves and potential Fed rate cuts.
RBI’s move fuels hopes of more rate cuts in financial markets, especially in bond trading rooms
RBI Governor Sanjay Malhotra cut the repo rate by 25 basis points to 6% and shifted the monetary policy stance to ‘accommodative’, signaling the possibility of more rate cuts ahead. Amid softening inflation and tax cuts by the government, the move aims to boost spending. Malhotra ruled out any rate hikes unless inflation unexpectedly spikes.
RBI MPC Meet Highlights: From repo rate to GDP growth, key numbers in focus
RBI MPC Meet Highlights: Led by Sanjay Malhotra, the RBI's MPC is anticipated to cut the repo rate by 25 bps and shift to an 'accommodative' stance, aiming to bolster economic growth amid subdued inflation. This decision follows a previous rate cut and CRR reduction to enhance liquidity.
Market in a phase of time correction; recovery to be gradual: Sanjay H Parekh
A little unfortunate is that our growth rate in this quarter will be flattish. We are coming out of low growth and this year, full year, maybe we will end up with 6-7% growth rate for Nifty and it can only slowly recover in in this environment.
Deposit rate cuts likely, but timing hinges on liquidity and credit growth: Dinesh Kumar Khara
Dinesh Kumar Khara welcomes the expanded scope of co-lending, now encompassing all loan types and ecosystem participants. He notes deposit rate cuts are contingent on system liquidity and credit growth, observing some banks have already reduced rates due to lower first-quarter credit growth.
RBI MPC Meeting: When and where to watch key decisions taken by Sanjay Malhotra-led panel
RBI's Monetary Policy Committee, led by Governor Sanjay Malhotra, will announce policy rate decisions on April 9, 2025, followed by a press conference. In February 2025, the MPC cut the repo rate to 6.25%, the first in five years, and reduced the CRR to 4% to boost liquidity. The RBI projects a 7.
RBI OMO gets over 3 times offers on high bond prices
RBI OMO purchase:The RBI’s second open market operation (OMO) in FY26 attracted bids worth ?70,144 crore—over three times the ?20,000 crore on offer—indicating robust demand as traders sought profit amid higher bond prices. Liquidity infusion may continue through FY26.
RBI to cut rates again? All eyes on central bank as it will commence FY26's first MPC meet
Reserve Bank typically conducts six bimonthly meetings in a financial year, where it deliberates interest rates, money supply, inflation outlook, and various macroeconomic indicators. The other five meetings are scheduled for June 4-6, August 5-7, September 29-October 1, December 3-5, and February 4-6.
Hold your cut in CRR horses, RBI
Banks are requesting the Reserve Bank of India (RBI) to cut the cash reserve ratio (CRR) to unlock ?1.3 lakh crore of their funds. The RBI has responded to liquidity issues with bond purchases and FX swaps. A CRR cut may not be necessary as liquidity is being managed, and further dividends to the government will help improve the situation.
There’s surplus liquidity in the system but why is it not reflecting in credit growth? Devang Shah answers
RBI has infused Rs 8 lakh crore liquidity, positively impacting near-term liquidity problems. Credit growth is slow due to sluggish demand and economic slowdown. RBI may implement further rate cuts to stimulate growth. Bond yields have eased, and markets expect an additional 15-25 basis points cut in coming months, with yields trading between 6.25-6.5%.
Treasury heads urge RBI to lower CRR, ensure surplus liquidity
Treasury heads have urged RBI to lower CRR to 4%. Doing so will inject durable liquidity in the system through an infusion of at least ?1.30 lakh crore.
RBI policy - Is it neutral or accommodative?
Over the last few months, there has been a distinct shift in the focus of monetary policy towards growth as inflation pressures have subsided. From December 2024 onwards RBI has focused on infusing durable liquidity to make conditions conducive for transmission and credit off-take.
Gold standard, macro play and a nimble elephant! Anand Rathi’s banking trio offers upside potential up to 21%
Anand Rathi’s banking portfolio favors ICICI Bank, Axis Bank, and SBI, expecting up to 21% returns. Regulatory easing, liquidity boost, and government capex are key drivers for credit growth and sector resilience, positioning these banks for strong performance in FY26.
Uday Kotak warns of deposit crunch, banking margins at risk
Uday Kotak, Asia's richest banker, warns of a significant deposit crunch threatening banks with margin erosion. Retail deposit growth is slow, pushing banks towards expensive bulk deposits. This situation leads to negative lending margins, especially with home loans. The challenge persists amid high-term deposit rates, tighter liquidity, and RBI's policy rate cuts.
Should one go back to defence & railways stocks with pressure on market easing? Dhananjay Sinha answers
Dhananjay Sinha from Systematix Group states that RBI’s measures like OMO purchases and CRR cuts have eased market pressure, creating positive sentiment, especially in the financial sector. Valuation corrections and improved liquidity are buoying markets. Defence spending remains resilient due to geopolitical contexts, while infrastructure spending by the government is seen as limited.
Understand the March mayhem, because it will happen again. What is behind the liquidity squeeze and why it matters to the stock market
Every March, India’s financial system, particularly the banking system, experiences a liquidity squeeze, pushing up short-term interest rates and making credit harder to come by. This isn’t unexpected. It has happened many times in the past and will happen in the future as well. So, better to understand it. Because, for some, March is the month for panic; but for others, it is the month of opportunity.
Keki Mistry expects GDP growth to touch 7% in H2; says 3 sectors will do well now
Keki Mistry anticipates India's growth to reach or closely approach 7% in the latter half of the year, contingent on positive monsoons and low food prices. He suggests the Reserve Bank of India might expedite rate cuts and liquidity measures to boost economic growth. Key sectors expected to benefit include FMCG, retail, and IT, particularly due to currency depreciation.
Puneet Pal advises investors to brace for RBI rate cut, falling bond yields in April- Here’s what they should do?
The Indian bond market remains steady amid expectations of a potential rate cut by the RBI in April, driven by anticipated sub-4% CPI print. Puneet Pal of PGIM India Mutual Fund predicts steepening of the yield curve and a liquidity surplus in the banking system. Investors are advised to focus on Short-Term/Corporate Bond Funds.
Is the pain over or could there be some more market corrections? Jitendra Sriram answers
Jitendra Sriram, Senior Fund Manager at Baroda BNP Paribas MF, discusses the shift from fiscal and monetary tightening to easing, boosting market performance. He sees potential in banking sectors due to reasonable valuations and re-rating opportunities in consumer services and private banks, while capital goods and markets could face derating. Earnings outlook for FY26 looks more favorable.
RBI liquidity injection and its impact on the bond market
The Reserve Bank of India (RBI) plans to inject Rs 1 lakh crore through OMOs and conduct a USD INR swap auction worth $10bn to address liquidity shortages. This strategic move aims to stabilize the economy by mitigating the liquidity crunch and balancing rupee volatility with maintaining market liquidity.
RBI will have to cut CRR to ease banking liquidity; Mahakumbh leads to significant cash withdrawals: SBI Report
The Reserve Bank of India may need to cut the Cash Reserve Ratio to alleviate the current liquidity pressure in the banking sector, according to an SBI research report. The report suggests using CRR as a regulatory intervention tool rather than relying on it solely for liquidity. A CRR cut would help stabilize liquidity and ensure smoother financial operations.
A triple attack on rupee
The intervention in the forex market by the RBI drained liquidity from the banking system which has been in deficit since mid-December 2024. RBI took various measures to support liquidity, from a 50 bps cut in CRR to 4% in its December MPC policy, to long tenured variable rate repo auctions and dollar-rupee buy-sell swap.
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