Indian Banks' Short-Term Debt Reaches 12-Year High Due to Strong Loan Growth
Tuesday, 23 July 2024, 03:53
Overview of the Current Situation
Indian banks are increasingly reliant on short-term borrowing to meet strong loan demand.
Short-Term Borrowing on the Rise
To bridge a growing funding gap, banks have turned to certificates of deposit.
Record Levels Observed
- Outstanding certificates surged to 4.3 trillion rupees ($51.4 billion)
- Highest levels since June 2012
Conclusion
This trend highlights the challenges faced by Indian banks in managing liquidity amidst increased loan demands.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.