'SBI, ICICI have enough forex liquidity' | india | Hindustan Times
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'SBI, ICICI have enough forex liquidity'

India's leading lenders, State Bank of India and ICICI Bank, said they may not use the special dollar window announced by the RBI on Friday, as they had enough forex liquidity.

india Updated: Nov 08, 2008 22:39 IST

India's leading lenders, State Bank of India and ICICI Bank, on Saturday said they may not use the special dollar window announced by the Reserve Bank on Friday, as they had enough forex liquidity.

"As far as the forex liquidity is concerned, we are positive...We are actually placing money on an overnight basis...And as far as our dollar balance-sheet is concerned, we are quite well-matched...So we may not need it (to use the RBI window allowed yesterday)," SBI's Chairman, O P Bhatt, told reporters on the sidelines of a FICCI-IBA organised seminar in Mumbai.

With a view to provide sufficient dollar liquidity to banks, RBI had on Friday announced a special window using which banks could borrow dollar funds through forex swaps.

While there is sufficient short-term liquidity in the system, banks will have to ensure availability of medium to long-term liquidity, Bhatt said.

"There is no issue in the day-to-day liquidity in the system. But the medium-to-long-term liquidity is an issue, which needs to be looked at," Bhatt said.

ICICI Bank's Joint Managing Director, Chanda Kochhar, said the special window opened by the RBI was a welcome step and would help to improve the foreign currency shortage in the banking system.

"We have also not started borrowing on that line. We have a very good and robust liquidity both in our branches and in our subsidiaries. We may not borrow," she said, adding that "in fact, we have excess liquidity."