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Private Banks See Sharp Drop in Tri-Party Repo Borrowing Share
M
Moneycontrol•07-10-2026, 21:11
Private Banks See Sharp Drop in Tri-Party Repo Borrowing Share
- •Private sector banks saw their share in tri-party repo borrowing drop sharply to 14 per cent in the first half of 2026-27 from 24 per cent previously, according to an RBI report.
- •State-owned banks increased their share in the collateralised overnight money market to 35 per cent during April-September 2026, up from 32 per cent in the preceding half-year period.
- •Collateralised segments, including tri-party repo and market repo, dominated the overnight money market by accounting for 97 per cent of the total volume.
- •Mutual funds remained the largest lenders in the tri-party repo market, maintaining their dominant share at 65 per cent throughout the first half of the fiscal year.
- •Foreign banks increased their share in market repo lending to 31 per cent, while public sector banks saw their share in market repo borrowing rise by 5 percentage points to 13 per cent.
Key Questions Answered
Private sector banks' share in borrowing through the tri-party repo market declined sharply to 14 per cent in the first half of 2026-27, down from 24 per cent in the preceding six-month period.
State-owned banks increased their share in the collateralised overnight money market to 35 per cent during April-September 2026, up from 32 per cent in the previous half-year period.
Mutual funds continued to be the largest lenders in the tri-party repo market, maintaining an unchanged share of 65 per cent during the first half of the fiscal year.
