India’s money-market turnover jumped to a record as state-owned lenders stepped up borrowing to fund booming credit demand.
The value of trades in the so-called tri-party repurchase segment, which accounts for about 70% of the nation’s money markets, rose to an all-time high of 5.5 trillion rupees ($57.8 billion) on May 13 and has stayed elevated since, according to Bloomberg-compiled data.
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India’s economic growth has held up well despite the energy crisis caused by the US-Iran war, preserving credit demand. State Bank of India is seeing strong loan uptake from sectors including power, renewables and data centers, Chairman CS Setty said Wednesday.
However, the funding rush had pushed up overnight borrowing costs and short-term bond yields in recent weeks, underscoring banks’ ongoing struggle to attract deposits as household savings flow into other investment products.
