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

• RBI raised daily CRR maintenance requirement to 99% from 90% amid shift to calibrated tightening. • Banks need to fully meet the 3% CRR requirement on NDTL. • At 100% CRR, banks would carry around ₹8 lakh crore in CRR balances. • A 5–10% rise in balances could withdraw ₹40,000–80,000 crore of liquidity. • Cost of funds could increase by around 1–2 bps. • NIM dilution expected to be small; banks may pass higher costs to borrowers, including NBFCs and corporates.

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