Banks Adjust LCR Amid Credit-Deposit Mismatch

Banks in India have been lowering their liquidity coverage ratio (LCR) in the last quarter.

LCR is a measure of how well a bank can handle sudden money needs.

Banks like HDFC, Federal, and Union Bank have reduced their LCR to manage money better for lending, as people are borrowing more than they are depositing.

Even though the LCR has decreased, all banks still have more than the required amount.

Experts say banks are using their extra money to lend more for better profits.

New rules coming in April will make it easier for banks to manage their LCR, especially for deposits made through internet and mobile banking.