India money-market turnover climbed to a record as state-owned banks ramped
lending to fund robust credit demand, data showed. Analysis from the country’s
clearing house said a further driver was that private banks—traditionally net
borrowers—unusually flipped to net lenders in May. The tri-party repo segment,
which accounts for about 70% of the money market, reached Rs 5.5 tln (USD
57.8bn) on May 13 and has stayed elevated. In recent weeks a scramble for cash
has pushed up overnight borrowing costs and short-term yields, underscoring
banks’ ongoing difficulty attracting deposits as household savings shift into
other investment products.
