The CII - IBA Financial Conditions Index at 61.1 for Q1 FY 2016-17 shows healthy improvement in the overall financial conditions in the Indian economy vis-à-vis the previous quarter (47.8) reflecting from strong expectations of leading banks and financial institutions of reduction in cost of funds, comfortable liquidity position and better external financial linkages whereas the overall economic activity also signaling improvement, albeit moderately on a quarter on quarter basis.

According to the CII - IBA Financial Conditions Index for Q1 FY 2016-17, there was a strong rebound in the expectation of banks and financial institutions for an improvement in the overall financial conditions index as reflected from a significant improvement in the cost of funds index (70.7), funding liquidity index (67.2) and the external financial linkages index (54.6). While the economic activity index (51.8) also recorded overall improvement, there was a relative decline in the performance from the previous quarter.

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