Khara noted that the coverage ratios of banks are at healthy levels, ensuring adequate buffers against potential credit risks. “The Liquidity and transmission outlookOn the monetary transmission front, RBI Governor Sanjay Malhotra highlighted that around 58 basis points (bps) of transmission on new loans has already taken place, with 21 bps achieved in the recent months. Deposit rates have also seen a rise of 106 bps, reflecting a gradual alignment of lending and deposit rates.Khara believes that the relax ...