Banks' liquidity buffers shrink as deposits lag credit growth

The sharpest decline was seen at Banking system liquidity has remained in a daily average surplus of '2.56 lakh crore in February so far, easing short-term funding conditions and bringing down overnight and money-market borrowing rates. However, despite banks holding surplus liquidity, this has not translated into an improvement in liquidity coverage ratios. Flowing Out OMOs have infused cash into banks, but credit-deposit ratio is at a record 82%"Banks are sitting on cash which they have through open mark ...