JEFFERIES ON BANKS ; RBI DAILY CRR TIGHTENING | SMALL NIM IMPACT

• RBI raised daily CRR maintenance requirement to 99% from 90%, in line with the shift to calibrated tightening. • Banks still need to maintain the full CRR norm of 3% of NDTL. • At 100% CRR, banks would carry around ₹8 lakh crore in CRR balances. • If balances rise by 5–10%, liquidity withdrawal could be around ₹40,000–80,000 crore. • Cost of funds could increase by around 1–2 bps. • NIM impact expected to be small, with banks potentially passing some of the higher funding cost to borrowers. • Tightening could also flow through to NBFCs and corporates via higher borrowing costs.

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