Indian banks do not have not enough liquidity
21 October 2008Notwithstanding the fact that bank system of India is enough reliable, unexpected crisis of liquidity, and also decrease in trust of investors, investors and managers are also suffering from global financial crisis. The government of the country has made a decision on financial injections.
In weekend the Central Bank of India has reduced the reserve rate from 9 up to 7,5 %: owing to it in financial system has received 600 billion rupees (12,4 billion dollars). Still nearby 8,2 billion dollars was released, as banks have been compelled to reduce investments in state loans from 25 up to 24 %.
Because of not too close communications with the world financial system, strictly adjustable state banks and only partially convertible currency of India has not been subject to global crisis.
Nevertheless the fear before distribution of financial crisis gradually covers also the crediting market of India. Despite of financial injections from the Central Bank, the Indian banks have ceased to lend each other.
Most of all the real estate market, as many civil engineering firms, suffer shortage of liquidity suffers from crisis in India.
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