Reserve Bank of India (RBI) on Tuesday bought total Rs 285 crore of oil bonds from Hindustan Petroleum Corporation and Bharat Petroleum Corporation under special market operations, a company official said.
HPCL sold Rs 160 crore and BPCL sold Rs 125 crore of 8.20%, 2023 oil bonds to the central bank at Rs 103.79 or 7.7660 per cent yield. The central bank is buying oil bonds to help state-owned oil marketing companies meet their foreign exchange needs.
The 8.20%, 2023 oil bonds were issued by government for a total sum of Rs 22,000 crore to state-owned oil marketing companies to compensate for the losses incurred through retail sales of oil products.
Indian Oil Corporation was issued Rs 11,976 crore of bonds, while BPCL and HPCL were issued bonds worth Rs 4,694 crore and Rs 5,331 crore, respectively.