Digital deposits blunt India’s LCR overhaul
Higher run-off rates drive up stressed outflows at HDFC and ICICI, offsetting relief for wholesale funding
Stressed retail outflows used to calculate the liquidity coverage ratio (LCR) surged at Indian banks in the second quarter, after a regulatory change increased the run-off rate assumptions for digital deposits.
HDFC Bank and ICICI Bank both saw retail deposit outflows jump 31.3%, to two trillion rupees ($20.7 billion) and 1.2 trillion rupees, respectively. For HDFC, the increase was split roughly
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