[1]“Mopping up the surplus banking liquidity is a challenge,” Nomura said [2] Kotak Mahindra Bank expects durable liquidity to peak at around Rs 12 lakh crore in September [3] The liquidity glut pulled down weighted average call rate to 4.96% on Thursday [4] CRR hike –will be complicated –to implement– because special FCNR(B) deposits were exempted from CRR and statutory liquidity ratio (SLR) requirements [5] For banks, abundant liquidity could support stronger loan growth -Courtesy FE

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Anxious moments ahead -Rising Bond yields will push up financing costs – and can increase solvency risks for leveraged entities.[1] Japan 3% -highest since 1996 [2] UK 6% – multi decade high [3] India – 10 Year paper touching 7% – [4] FED might be required to raise rates if inflation does not crawl back to mandated 2% -and this will be a bad news for emerging markets [5] For India — only durable answer is–become competitive –to attract FDI and portfolio investment– Courtesy BS