Don’t miss the latest developments in business and finance.

RBI buys bonds worth Rs 8,471 cr under OMO

Image
Press Trust of India Mumbai
Last Updated : Jan 21 2013 | 1:39 AM IST

As part of the strategy to infuse liquidity in the system, the Reserve Bank of India (RBI) today bought bonds worth Rs 8,471.45 crore under open market operations (OMO), as against a target of Rs 12,000 crore.

Four securities were on offer for OMO, of which the RBI subscribed to three, the central bank said in a statement.

While the government security (G-Sec) maturing 2017, with a coupon rate of 8.07%, garnered over Rs 1,346.08 crore, the 7.80% GS maturing on 2021 garnered Rs 3,300.85 crore.

The 8.13% GS maturing 2022 mopped-up Rs 3,824.51 crore.

The central bank has infused over Rs 41,210 crore in five tranches within the past few weeks. While it bought bonds worth Rs 9,435.48 crore on November 24, it infused Rs 5,782.95 crore on December 1 this year.

On December 8, it bought bonds worth further Rs 9,092.9 crore, followed Rs 8,790 crore on December 22.

More From This Section

On December 29, the apex bank infused a further Rs 8,109.48 crore.

OMOs are the "first preference" of RBI while injecting liquidity and there is an opportunity to raise up to Rs 2.74 lakh crore through the window.

RBI Deputy Governor Subir Gokarn had earlier said that liquidity is likely to be under pressure for some more time on account of such as advance tax payments.

Overnight drawings by banks from RBI's liquidity adjustment facility have exceeded Rs 1,20,000 crore and, it has said in the past that deficit has exceeded its targeted one% of net demand and time liabilities (NDTL).

Also Read

First Published: Jan 06 2012 | 8:07 PM IST

Next Story