Several banks have reported a further decline in the liquidity coverage ratio (LCR) in the fourth quarter of FY26 amid slowing deposit growth, banks’ earnings disclosures showed. For instance, HDFC Bank has cut down LCR to 114% in the March quarter from 116%, Federal Bank has decreased it to 119.9% from 123.9%, while Union Bank of India has decreased its ratio to 113.8% from 123.6% a quarter ago. Among other large private banks, Kotak Mahindra Bank‘s LCR fell 42 bps to 134.4%, while it stayed flat for ICICI Bank and rose by 1% to 117% for Axis Bank. This is the second straight quarter banks reported a fall in the LCR.