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RBI buys bonds worth Rs 9,857 cr under OMO

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Press Trust of India Mumbai
Last Updated : Jan 21 2013 | 2:06 AM IST

As part of its programme to infuse liquidity, the Reserve Bank has bought bonds worth Rs 9,857.42 crore through open market operations (OMO) against a target of Rs 10,000 crore.

Four securities were on offer for OMO conducted yesterday and RBI subscribed to all of them, the central bank said in a statement.

While government securities (G-Sec) maturing in 2017 with a coupon rate of 8.07% garnered Rs 1,525 crore, the 9.15% G-Secs maturing in 2024 garnered Rs over 3,951.35 crore.

Furthermore, 8.28% G-Secs maturing in 2027 mopped up Rs 2,897.55 crore and 8.97% G-Secs maturing in 2030 garnered 1,483.51 crore.

With this, the central bank has infused nearly Rs 92,000 crore into the financial system in ten tranches in the last two months.

OMOs are the "first preference" of the RBI for 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 this month said that OMOs and cut in cash reserve ratio have not got liquidity deficit down to comfort levels and there can be more buyback of government bonds by the central bank.

Overnight drawings by banks from the RBI's liquidity adjustment facility has been around Rs 1,00,000 crore which is above the RBI's stated comfort level of a deficit of around Rs 60-65,000 crore in the system, he had said.

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First Published: Feb 18 2012 | 5:48 PM IST

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