Debt Mutual Fund Strategy

Cetral Government State Government 2500 2000 Classification - Restricted Rising credit growth and G-sec supply may continue to exert upward pressure on shorter end of the yield curve... Gross Govt Borrowing Rs. Bn Bank Credit Growth % (YoY) 1500 1000 500 0 النابلس Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 200000 External Commercial Borrowings Debt Outstanding USD Million 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 FY91 34 Feb-23 Mar-23 FY93 FY95 FY97 FY99 FY101 FY103 FY105 FY107 FY109 FY111 FY113 FY115 PR: Partially Revised; P: Provisional Source:- GOVERNMENT OF INDIA FY117 FY119 FY121PR Confidential/Restricted 20 18 16 14 12 10 8 6 4 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Source:- Bloomberg ■ The demand for liquidity is likely to remain high, given the rising credit growth and G-sec supply. ■ With the cost of borrowings rising globally, it will be crucial to track how the short term External Commercial Borrowings (ECB) are getting refinanced. ■ Should this demand for funds also come to Indian markets, the pressure on system liquidity could get accentuated. ■ Thus, the pressure on liquidity is likely to continue in the near to medium term which in turn can add to the upward pressure on the shorter end of the yield curve. Classification - Restricted HDFC BANK RESEARCH HDFC BANK We understand your world

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