Understanding The Banking Scenario: CARE Ratings  
A customer waits to deposit Indian 100 rupee banknotes at a counter inside an Axis Bank Ltd. branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Understanding The Banking Scenario: CARE Ratings  

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

CARE Ratings Research Report

The banking picture this year has been quite different from the past. There is surplus liquidity in the system as banks are parking large amounts in the reverse repo auctions.

Growth in credit is lagging that of deposits and yet there is a tendency for government securities yields to increase notwithstanding aggressive measures by the Reserve Bank of India to keep them down.

At the same time, banks are lowering their lending rates to garner business, especially on the retail side.

Hence the movement of commercial lending rates and G-Secs are not in consonance

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CARE Ratings Understanding the Banking Scenario.pdf

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