The Reserve Bank of India (RBI) is considering rolling over a $5 billion foreign exchange swap set to mature next week in order to prioritize liquidity management over bolstering forex reserves. Some investors believe that allowing the swap to mature could lead to an inflow of around ₹40,000 crore in the banking system, but others argue that the RBI should focus on battling inflation. The RBI s decision may also be influenced by its desire to augment reserves as it collects $5 billion back from banks.
NIMs bottoming out, strong loan growth, network expansion and stable asset quality are some of the factors that favour India s biggest private sector lender
The Reserve Bank of India (RBI) is considering rolling over a $5 billion foreign exchange swap set to mature next week in order to prioritize liquidity management over bolstering forex reserves. Some investors believe that allowing the swap to mature could lead to an inflow of around ₹40,000 crore in the banking system, but others argue that the RBI should focus on battling inflation. The RBI s decision may also be influenced by its desire to augment reserves as it collects $5 billion back from banks.
Our expectation is that the RBI will not do any more rate hikes. In the previous policy, they did mention that they are very focused on bringing inflation down.