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அனைவரும் எதிர்பார்க்கும் நடிகை சோனாவின்

 *அனைவரும் எதிர்பார்க்கும் நடிகை சோனாவின் சுயதரிசை கதை ‘ஸ்மோக்’ வெப்சீரியஸ்.* *முக்கிய கதாபாத்திரத்தில் நடிக்கிறார் நடிகை சோனா* தென்னிந்திய ...

Saturday 18 April 2020

Views of Mr. R.K.Gurumurthy, Head – Treasury,


Views of Mr. R.K.Gurumurthy, Head – Treasury, Lakshmi Vilas Bank on the RBI announcement today


Continuing from where it left, the v.2 of additional monetary support from RBI to address the COVID-19 economic collapse, came with a specific objective of channelizing liquidity to credit oriented schemes. RBI has assured continuation with super-easy liquidity and softer rates policy to ease financial stress.


Reverse Repo rate has been cut by 25 basis so that the corridor now becomes 90 basis. The system has roughly 7 trillion of excess liquidity that are parked at RBI's reverse repo window. Today's cut is a disincentive to overnight investments and should find way into credit. Additional TLTRO of 50,000 Cr has been announced and is likely to continue. LCR requirement has been lowered to 80% until October 2020 - thereby releasing the pressure for banks to divert a larger part of their investments in HQLA.

Measures towards further relaxing NPA recognition norms and additional refinance facility to NABARD etc will help in deferring NPA recognition and also help rate transmission better. 

In recent times, yields on GSecs have hardened leading to sharp increase in the borrowing costs of several state governments. The spread over overnight repo is close to historic highs and therefore warranted strong action. The relaxation in WMA guidelines would go some distance towards addressing this.

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