Indian state-run banks net sold government bonds in the last 25 trading sessions to Dec6 . State-run banks are focusing on lowering investment under the Statutory Liquidity Ratio (SLR) to support credit growth .
Mumbai: According to data from the Clearing Corp of India, Indian state-run banks that net sold government bonds in the last 25 trading sessions to Dec6 may not attract buyers immediately as their focus shifts to lowering investment under the Statutory Liquidity Ratio (SLR) to support credit growth.In such a scenario, state-run banks will do moderate purchasing, according to Sushanta Mohanty, general manager-treasury at Bank of Baroda (BoB).SLR stands for short-run savings ratio, which is often converted into cash, according to senior traders at banks.As deposit rates rise and the cost of funds will rise, according to RBI.As deposit rates increase, state-run banks are focusing on liquidity enhancement.
However, yields are unlikely to decline much from their current levels, according to traders.The benchmark yield was last seen at 7.26%.I don't see significant increases in yields.BoBs Mohanty said that yields should hover in the 7.20% to 7.10% range for some time unless there are any (positive) surprises.