New Delhi, July 18 (UNI) Fitch Ratings said that the Reserve Bank of India’s emphasis on liquidity reduced deposit pressure on Indian banks. It was stated in a report published on the theme ‘Indian Banks Structural Deposit Pressures Ease on RBI’s Liquidity Infusions’.
The country’s premier central bank, the RBI, showed its commitment to maintaining favourable liquidity conditions within the domestic economy.
Fitch Ratings is a renowned American credit rating agency. It is officially authorised by the US Securities and Exchange Commission.
Fitch Ratings is considered one of the “Big Three credit rating agencies” along with Moody’s and Standard & Poor’s, or S&P.
RBI’s prudent policy-making is reflected by falling deposit costs and increased system liquidity.
Fitch also expected a slight decline in banks’ margins as a significant share of loans falls in the future.
This report also highlighted a future shift in retail savings, as funding and liquidity conditions will affect the Central Bank policy.
If the asset rates reduce in the future, then it will support asset quality, and a high loan growth rate will affect the pricing.
