NBFCs to face higher fund costs as banks look to pass on MCLR hikes

Liquidity has generally been trending down with the central bank seeking to reduce excess liquidity from the system to manage inflation. The banking system liquidity surplus has narrowed to around ₹1.5 lakh crore from ₹6.3 lakh crore at the start of the fiscal year. Due to tightening liquidity conditions as banks are forced to hike deposit rates, they will pass on this hit through MCLR loans.

Generated by Feedzy