RBI gets Rs 1.13 lakh cr worth bids in targeted LTRO

The Reserve Bank of India on Thursday said it has received Rs 1.13 lakh crore worth of bids in the targeted long term repo operation (TLTRO) conducted for an amount of Rs 25,000 crore with a three-year tenor.

The RBI received 18 bids in the auction.

The total bids that were received amounted to Rs 1.13 lakh crore, implying a bid to cover ratio -- the amount of bids received relative to the notified amount -- of 4.5, RBI said in a release.

It allocated an amount of Rs 25,016 crore on a pro-rata allotment percentage of 22.04 per cent.

Last month, RBIhad announced to conduct auctions of targeted term repos of up to three years tenor of appropriate sizes for a total amount of up to Rs 1,00,000 crore to help banks meet any funding mismatches.

The central bank said liquidity availed under TLTRO by banks has to be deployed in investment grade corporate bonds, commercial paper, and non-convertible debentures over and above the outstanding level of their investments in these bonds as on March 27, 2020.

Banks have to acquire up to 50 per cent of their incremental holdings of eligible instruments from primary market issuances and the remaining 50 per cent from the secondary market, including from mutual funds and non-banking finance companies, RBI had said.