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Our Bureau

Mumbai, Nov. 8 The country’s top bankers on Saturday welcomed the Reserve Bank of India’s move to provide forex liquidity to banks that are facing liquidity crunch following the drying up of lines of credit globally.

However, the country’s largest two banks — SBI and ICICI — said they do not need to avail themselves of this window in the near future.

“State Bank of India has not started borrowing from this window as of now. As far as forex liquidity is concerned, we are positive. We are, in fact, placing money on an overnight basis,” said Mr O.P. Bhatt, Chairman, State Bank of India.

“The asset liability is also well-matched in the medium and long term as far as our dollar balance sheet is concerned,” he said.

“It is a welcome move and will give a lot of confidence to the Indian banking system,” said Ms Chanda Kochar, Joint Managing Director, ICICI Bank.

“ICICI bank has robust liquidity in its branches and subsidiaries and has not borrowed from the RBI window,” she said.

Mr Rana Kapoor, Managing Director and CEO, Yes Bank, said there was an evident liquidity need for foreign branches of some private sector banks.

They were speaking on the sidelines of a banking seminar organised by the Federation of Indian Chambers of Commerce and Industry along with Indian Banks’ Association.

RBI said on Friday that it would provide forex liquidity to public and private sector banks having foreign branches or subsidiaries, through forex swaps of tenors up to three months.

It had also allowed banks to borrow under the Liquidity Adjustment Facility at the prevailing repo rate.

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