India Banking Cash Glut Opens Up Arbitrage for Lenders

The surge in India’s banking liquidity has opened up an arbitrage opportunity for lenders, enabling them to borrow cheaply and park the money with the central bank at a higher...

By Subhadip Sircar, Bhaskar Dutta · Bloomberg Markets

The surge in India’s banking liquidity has opened up an arbitrage opportunity for lenders, enabling them to borrow cheaply and park the money with the central bank at a higher rate.