An Indian two thousand rupee banknote is arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
The Indian banking system continues to be flush with liquidity, in stark contrast to conditions that prevailed through most of last year. The surplus liquidity has started to seep through to the cost of corporate funding at least for high-rated firms borrowing from the bond markets, even though a wider decline in borrowing costs remains elusive.Data from the Bloomberg Intelligence Banking Liquidity Index shows that the system is curr...