India bank liquidity surplus falls amid tax payments, debt sales
India's banking system liquidity surplus has narrowed to 6.2 trillion rupees ($64.74 billion), down from a record high of 11.16 trillion rupees two weeks ago. This decline is attributed to tax outflows and debt sales. Traders anticipate further decreases, potentially falling below five trillion rupees due to goods and service tax payments and ongoing bond sales. Outflows for debt sales last week totaled 500 billion rupees, with another 250 billion rupees scheduled for Monday.
India's banking system liquidity surplus is continuing to ease and is likely to narrow further this week on tax outflows, traders said. 16 trillion rupees two weeks ago. 2% of total deposits in the banking system. Traders expect the surplus to fall further as goods and service tax outflows hit on Monday and Tuesday.
" Outflows of 500 billion rupees toward debt sales last week and another 250 billion rupees for bond sales scheduled for Monday are also weighing on liquidity. 7700 Indian rupees)