HSBC predicts RBI's policy could boost financial sector growth through liquidity support and regulatory easing.

HSBC expects the Reserve Bank of India's upcoming monetary policy to clarify key aspects affecting the financial sector. A more supportive RBI stance could benefit non-banking financial companies (NBFCs) and banks by enhancing their growth and profitability. Continued liquidity support through open market operations is anticipated, which would be particularly positive for highly rated NBFCs. For banks, ideal outcomes would include regulatory relaxations and open market operations without cutting the repo rate, helping to maintain interest margins and reduce funding costs. This approach could foster better deposit growth and a stable financial environment.

6 weeks ago
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