New Delhi, March 7 -- The liquidity situation in India's banking sector is expected to improve significantly by the end of March 2025, with a shift towards a strong surplus, according to a research report by Union Bank of India.

The report also indicated that the overall system liquidity is likely to end the financial year in neutral to surplus territory.

It said "we may potentially see a shift in core liquidity (ex-government balance) towards a strong surplus by end-Mar'25 while system liquidity is also estimated to end the year at neutral to surplus levels".

The report highlighted the Reserve Bank of India's (RBI) recent liquidity measures, announced on March 5, 2025, amounting to Rs 1.9 lakh crore. These measures exceeded market exp...