The Reserve Bank of India (RBI) will put up four government bonds of different tenures and interest rates for sales to raise Rs 15,000 crore on August 08, 2013. Unlike the previous auction announcement, the central bank apparently brought back normalcy by including some long term securities.
Bank-borrowings from the Reserve Bank of India (RBI) on Wednesday dropped to nine-month low. Banks borrowed Rs 17,215 crore from the central bank's daily repo window compared with Rs 6,850 crore recorded on October 04, 2012. In banking parlance, it is called as easing in liquidity deficit.
Indian government bonds on Thursday hit the lower circuit on the back of excessive selling by foreign institutional investors (FII), who were lured by lower US Treasury bond prices. Trading was frozen on Thursday for about 45 minute between 9.15am and 10am, traders said.
Floating rate interest on retail term deposits, while a popular product in the US and Europe, is mostly unheard of India. State-owned IDBI Bank on Wednesday launched such a scheme, which will be benchmarked to the average yield of 364-day treasury bill auctions undertaken by RBI during the preceding three months. Should you subscribe to it?
In a bid to check rupee‘s free falling against the US dollar, the Reserve Bank of India (RBI) on Monday hiked the limit of external commercial borrowing by USD10 billion. Moreover, the regulator also increased the limit of overseas investment in government bonds by $5 billion to $20 billion.
The country is likely to see fewer bond issuances by companies this financial year because of the prevailing stagflation and high government borrowing, says Arvind Konar, head-fixed income, Almondz Global Securities. Stagflation is when inflation remains high despite a slowing economy.
In a bid to ease the tightening liquidity situation the Reserve Bank of India will conduct open market operations (OMO) by buying back government bonds aggregating Rs 12,000 crore on Friday (May 25). The rupee‘s free falling against the US dollar has led to a crisis in rupee liquidity in the economy.
The RBI on Tuesday issued the government borrowing calendar for marketable dated securities (or government bonds in simple term) for the first half of the fiscal year 2012-13. In between April and September, 2012, the government will sell bonds worth Rs 3.70 lakh crore (gross) out of its budgeted target of Rs 5.69 lakh for the full year.
Currently, Infrastructure Development Finance Company (IDFC) and L&T Infrastructure Finance, both engaged into infra lending business, are running two retail issues offering 9% rate of interest per annum. Should you invest?