Asked about the timing of fundraise, he said, it would be tentatively in the third week of this month. The base issue size is going to be Rs 500 crore, with a greenshoe option of Rs 2,500 crore
Deposit rates may start easing
RBI governor Shaktikanta Das said that the CRR reduction will release Rs 1.16 trillion into the banking system, providing additional liquidity and enable banks to extend more loans
RBI Monetary Policy Meeting Dec 2024 Updates: Catch all the updates here
Experts are of the view that the central bank is likely to opt for status quo on the short-term lending rate (repo), and will possibly tinker with cash reserve ratio (CRR)
The NSE Nifty 50 climbed 0.32 per cent to 24,534.65 points, as of 11:02 a.m. IST, while the BSE Sensex gained 0.37 per cent to 81,145.54
Indians are flocking to invest in stocks, putting pressure on banks which need to strike a balance between deposits and loans
Several other state-owned lenders such as Canara Bank and Bank of India are also planning to raise funds through infrastructure bonds
According to current norms, for Rs 10,000 crore of loans, banks have to ensure Rs 4,000 crore of priority sector lending target
The OMO sale is quite an innovative way to address the concerns around currency
RBI had decided on September 8 to discontinue the I-CRR by October 7, in a phased manner
"The estimates are that around Rs 90,000 crore to Rs 1 trillion will go out as goods and services tax (GST) outflow," a dealer at a primary dealership said
Only those with asset-liability management mismatch would consider upward rate revisions
One-year swap rate has jumped 13 bps so far in September, whereas the five-year swap rate has jumped 19 bps
The one-year swap rate hit 7.10 per cent on Monday, the highest level since March 9, while the five-year swap rate rose to 6.85 per cent, a level last seen on November 9, 2022
Net impact of incremental CRR was estimated to be little more than Rs 1 trn
The amounts impounded under the I-CRR will be released in stages so that system liquidity is not subjected to sudden shocks and money markets function in an orderly fashion
The I-CRR could be reduced to 5%-8% in a phased manner from the current 10%, treasury officials have said
"The I-CRR is acting as an indirect rate hike and, at best, the RBI could lower the limit taking into consideration tax outflows," a senior treasury official at a private bank said
Targets 4 mn annual output; new CFO to take charge on Jan 1