Indian banks keep borrowing as liquidity stays uneven
In short
Several Indian banks are still borrowing from the market even after foreign currency non-resident deposit inflows. The report says cash is not spread evenly across banks, and some are using more certificates of deposit.
This matters because some banks may still face higher funding costs. The report does not name the banks or say how long this will last.
What the reporting says
Several banks in India continued borrowing from the market despite inflows from foreign currency non-resident deposits. The reporting says liquidity is not evenly spread across the banking sector, with some banks taking more certificates of deposit and others shedding expensive deposits. The immediate consequence is continued reliance on costly market funding, but which banks are most affected is not stated.
Why it matters
Several banks in India are borrowing from the market despite FCNR deposit inflows, according to the summary. The piece says excess liquidity is uneven, with some banks increasing certificates of deposit while others reduce expensive deposits. The reporting does not identify the lenders or quantify the scale of borrowing, so the immediate impact appears to be higher funding costs for parts of the sector.