The largest lender of the country, State Bank of India has decided to borrow funds from the market in order to cruise past the liquidity crunch. The shortage in liquidity has arisen due to the 3G spectrum sale and advance tax payment.
The bank’s decision to borrow from the market has been declared by SBI Chairman, O P Bhatt.
SBI and also other banks have been tiding through the liquidity crunch by borrowing from RBI and the inter bank call money market.
Short-term liquidity crunch is created in the system as over Rs 1 lakh crore have been gone out of the system yowards payment of 3G and broadband spectrum allocation.
The monetary policy review of the RBI is going to come on July 27 in a situation covering towering inflation and tight liquidity status in the country.