Mumbai, March 7, 2025: A report by Union Bank of India (UBI) predicts that India’s banking liquidity will shift into a strong surplus by the end of March. Key factors driving this improvement include increased government spending, better deposit growth, and the Reserve Bank of India’s (RBI) liquidity management measures, which have helped ease financial constraints.
Analysts believe this surplus will boost credit growth and help stabilize short-term interest rates. The report also highlights the RBI’s role in ensuring adequate liquidity to support economic recovery. As March-end approaches, market participants are closely watching fiscal trends and banking sector developments.
