RBI will get Rs 1.13 lakh crore worth bids in centered LTRO

The central financial institution acknowledged liquidity availed below TLTRO by banks has to be deployed in investment grade corporate bonds, business paper, and non-convertible debentures over and above the prominent level of their investments in these bonds as on March 27, 2020.

RBI (Image: PTI)

The Reserve Bank of India on Thursday acknowledged it has bought Rs 1.13 lakh crore worth of bids in the centered lengthy duration of time repo operation (TLTRO) carried out for an amount of Rs 25,000 crore with a three-year tenor. The RBI bought 18 bids in the auction.

“The total bids that had been bought amounted to Rs 1.13 lakh crore, implying a expose to cowl ratio — the amount of bids bought relative to the notified amount — of 4.5,” RBI acknowledged in a initiate.

It allotted an amount of Rs 25,016 crore on a legit-rata share percentage of 22.04 per cent.

Final month, RBI had introduced to habits auctions of centered duration of time repos of as much as three years tenor of acceptable sizes for a total amount of as much as Rs 1,00,000 crore to motivate banks meet any funding mismatches.

The central financial institution acknowledged liquidity availed below TLTRO by banks has to be deployed in investment grade corporate bonds, business paper, and non-convertible debentures over and above the prominent level of their investments in these bonds as on March 27, 2020.

Banks must form as much as 50 per cent of their incremental holdings of eligible instruments from predominant market issuances and the last 50 per cent from the secondary market, including from mutual funds and non-banking finance firms, RBI had acknowledged.

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First Published on Apr 9, 2020 08: 18 pm

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