Tailwinds for Banking industries in India
-repo rate unchanged at 5.15%
-RBI have changed the tenure for reverse repo rate for 4.9% which is now 14 days earlier it was for the overnight period
now it will be for 14 days.
now banks will face pressure to create more loans.
Also,
Long term repo is for 1 and 3 years corpus will be 1 lakh crore.
which basically means
Banks can now borrow from RBI @ 5.15 for 1 and 3 years.
it seems IDFC first should have to increase its numbers of “Current accounts” now
-No need to maintain a Cash reserve ratio of 4 % for retail loans
so, banks will have more money to lend now.