This cap was initially set at 20 per cent of daily average rupee deposits and tightened further to 18 per cent as from July 2011. There is no limit on banks’ holdings of Treasury Bills in their trading book. This is expected to encourage banks to direct loanable funds towards extending more credit and also promote the long-awaited development of the secondary market.
(More on this issue) Banking Sector Performance Our banking sector continued to show remarkable resilience – in some cases, insolently so – in the midst of the global financial meltdown. As at 30 September 2011, unaudited figures show that banks realised profit after tax of Rs15.9 billion against Rs10.1 billion a year earlier.