• IFR accounting shift: Moving the 2% Investment Fluctuation Reserve maintained under AFS and FVTPL to the P&L will provide a positive buffer for banks against prior bond portfolio MTM losses.
• Interest rate outlook: Borrowers face no immediate risk of rate hikes over the next one to two months, as markets are expected to normalize following recent geopolitical disruptions.
• System liquidity surge: System liquidity increased from an average of ₹2.35 lakh crore in the prior two months to ₹3.5 lakh crore, aided by strong March deposit inflows and advance repayments.
• Rupee position unwinding: SBI will comfortably exit and unwind its open rupee positions ahead of the 10th deadline without incurring any significant financial loss.
• Credit demand trends: Loan growth remained robust across all categories through March 31, including unsecured personal loans and gold loans, showing no asset quality stress or demand slowdown.