RBI Norm Changes to Boost Liquidity Coverage Ratios for Banks with Wholesale Deposits

Revised RBI norms effective April 1 will lower run-off factors for wholesale deposits from trusts, partnerships, and LLPs, improving banks' liquidity coverage ratios (LCR) by about six percentage points on average. Private sector banks, with higher wholesale deposit shares like HDFC Bank and ICICI Bank, are expected to benefit more than public sector banks such as SBI and Bank of Baroda, which rely more on retail deposits. Experts note varying impacts based on each bank's deposit composition.