The rise in currency in circulatiom is perplexing when economic activity has nosedived. Generally, CIC should rise in tandem with growth in economic activities, as people need cash to transact
The increase in CDS spreads indicates an increasing risk of default, but not necessarily that bond investors would default
The bond and currency markets are open now between 10 am and 2 pm, from their usual 9 am to 5 pm
On April 27, the RBI had introduced the Rs 50,000-crore liquidity line for the MF industry
Banks had issued these bonds as additional tier 1 (AT1) bonds to raise capital in the past
SBI, however, notes that incremental credit to industry is highest in 147 months
The write-offs are technical or prudential in nature, which means the banks have made 100 per cent provisions against the loans
The rater will now redraw its projections assuming that a business-as-usual operating environment may not return soon
The special repo window, under which banks can borrow up to 90 days to extend loans or buy debt papers of MFs, remains open till May 11. The total amount banks can borrow is Rs 50,000 cr
According to the available data, the credit risk fund category saw its assets under management (AUM) dip by another 12 per cent in April to Rs 48,392 crore
One-year return for fund category is 17 per cent
Bid and offer pattern shows a healthy market response
No firm decision has been reached on this, said sources. The SDF, when introduced, will become the lower bound of the corridor for the liquidity management window.
Ways and means advances (WMA) are temporary liquidity line given by the central bank to the government to meet short-term expenditure needs of the government
According to the International Monetary Fund, the pandemic is expected to cause the biggest recession since the Great Depression
The approach, according to people familiar with the RBI, is that the regulator can only enable the banks to take such commercial decisions
They noted that the pandemic hadn't destroyed the economy's production capabilities, and once the situation starts normalising, domestic demand would need to be stimulated swiftly
While efforts are being mounted on a war footing to arrest its spread, Covid-19 would impact economic activity in India directly through domestic lockdown, the central bank has said
Wary of supply, bond dealers asked for sharp increase in rates from state governments during Wednesday's auction.
According to the schedule, 19 states had lined up to borrow up to Rs 37,500 crore, but they managed to raise Rs 32,560 crore.