SBI sees liquidity despite 3G

SBI sees liquidity despite 3G

“I think there is enough liquidity in the system...on an average, there is still a fair amount of liquidity in the system,” State Bank of India Chairman O P Bhatt, told reporters on the sidelines of an RBI-organised event here.

Nearly Rs 70,000-crore is expected to go out of the system next week owing to payments by telecom companies. This, together with the advance tax outgo in mid-June, is feared to drain out around Rs 1,00,000-crore from the banking system.

Bhatt, however, added that it is early to say whether the impact on liquidity from the 3G payments will have temporary or permanent impact on the liquidity conditions.

State Bank has been approached by telecom firms for loans of as much as Rs 18,000-crore to make their payments for third-generation waves and the lender is likely to disburse nearly half of that amount, Bhatt said.

“We have requests (from telecom companies) for that kind of money (nearly Rs 18,000-crore)...that is at the upper end. We may provide roughly half of that,” Bhatt said.
Also, the country’s largest lender is unlikely to increase its deposit rates in the immediate future, Bhatt said, replying to a question.