Given the tightening liquidity conditions and higher cost of borrowings, corporates with a weak credit profile are likely to tap a loan against shares facility to meet their funding requirements
As market sentiment turns positive for India, 10 firms are looking to raise Rs 9,000 cr via IPO over the next 45 days. Will the primary market activity suck out liquidity from the secondary markets?
Walmart Inc-backed Flipkart is considering raising $2 billion to $3 billion at a valuation of more than $40 billion to expand its product range in India and challenge rivals
Lack of repo suggests RBI tolerance of higher money mkt rates: Analysts
: Andhra, Telangana, Rajasthan and Punjab along with three north-eastern states are repeatedly using the Reserve Bank's special short-term liquidity windows instead of market borrowings, indicating their serious cash imbalances, says a report. The north-eastern states which are over and again using these facilities are Manipur, Mizoram and Nagaland. The central bank offers three short-term liquidity windows -- special drawing facility (SDF; for 5 working days), ways and means advances (WMA, for 5 working days) and over draft (OD, for 14 working days) facilities to states to tide over their liquidity needs. One of the main reasons for the states to use these windows is the cheaper pricing than market borrowings. Till August, states have availed SDF facility at an average rate of 3.2-4.2 per cent, while state bonds are priced at 7.8 per cent or more. A recent RBI study has identified 10 "vulnerable states" in terms fiscal management -- Andhra Pradesh, Bihar, Haryana, Jharkhand, Keral
Call mkt rates at higher end of rate corridor as liquidity shrinks rapidly
The Reserve Bank of India's currency intervention is making the rupee less attractive for carry traders, analysts said.
In a Q&A, she says the interest differential with US does not matter so much because India has caps on interest sensitive inflows. Overseas investment is a very low share of the country's debt market
Banks face pressure to raise deposits; weighted average call rate highest in 3 years
'Net LAF continues to be in surplus for the past two years, except for 2-3 days when because of SLF for the primary dealers it became deficit'
The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs
Loan, deposit growth gap at 10-year high
Federal Reserve officials raised interest rates by 75 basis points for the third consecutive time and forecast they would reach 4.6% in 2023
Days of easy money over as credit growth rises
RBI asked for mkt views on BoP, impact of 75-bps rate hike by US Fed
Spread between 10-yr G-sec and 2-yr bond yields narrows to 38-mth low
If any claim is not filed during the liquidation process, the amount of claim collated during CIRP should be verified by the liquidator
The RBI's average daily absorption of excess liquidity was at Rs 3.8 trillion during June-July against Rs 5.5 trillion in May and Rs 7.4 trillion a month ago
Interest rates on term deposits, money market instruments could go up further, even as RBI may conduct repo operations to maintain liquidity in the system
RBI's forex moves, strong credit off-take lead to faster liquidity decline