The Daily Brief

Why Bank Stocks Are Suddenly Booming

Apr 23, 2025
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INSIGHT

RBI Eases Bank Liquidity Rules

  • RBI relaxed liquidity coverage ratio (LCR) rules after initial tough draft faced pushback.
  • Banks now assume lower runoff rates on digital deposits, easing pressure on lending capacity.
INSIGHT

Final LCR Rules Boost Liquidity

  • The final LCR rules actually improve systemic liquidity by about 6% based on RBI data.
  • More liquidity freed from safe assets can be lent at higher yields, enhancing bank profitability.
INSIGHT

Surat's Diamond Industry Crisis

  • Surat dominates global diamond polishing with 90% market share employing 8-10 lakh workers.
  • Industry faces historic slowdown due to Russian bans, weak global demand, US tariff uncertainty, and inventory piling, hurting livelihoods.
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