TLTRO extension to stressed sectors unlikely to find takers
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New Delhi, Dec. 9 -- The Reserve Bank of India's (RBI's) recent move to extend the on-tap targeted long-term repo operations (TLTRO) to stressed sectors identified by the K.V. Kamath Committee is unlikely to find any takers because of poor credit demand despite surplus liquidity in the system.
Banks have been parking excess liquidity of more than Rs.6.5 trillion at the central bank's reverse repo window on a daily basis, which is more than the liquidity of Rs.1 trillion made available by the RBI under the on-tap TLTRO.
The system has been flush with liquidity with RBI injecting as much as Rs.5.38 trillion through forex purchase, open market operations and TLTROs during the first half of the fiscal year.
More than half of this liquidity...
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