| Use of equity derivatives is expected to help the banks in prudently managing the risks attached to investment in equities |
Bankers also propose to raise the export credit refinance limit from 15% to 25% of their outstanding export credit
Explaining the same, Fimmdas chief executive officer CES Azariah said, Given the rising level of exports in the country and increasing demand for export credit, a rise in export refinance limit would be very beneficial for the banks.
Further, Fimmda also plans to propose the RBI to introduce a window for buying of illiquid government securities. A significant portion of the banks investment in gilts remain untraded and have been shifted to the held to maturity category. However, with RBI intervening and buying these illiquid securities at regular intervals is expected to prove to be an alternative to infuse liquidity in the system, given the acute crunch of liquidity in the system.