Citi Bank has arranged the fund-raising for Cholamandalam and PNB Housing.
“There is a significant difference not only between public sector and private sector banks’ interest rates but also between our repo-linked lending rate and MCLR rate,” said CS Setty, managing director at State Bank of India.
RIL announcement comes a day before the second instalment of TLTRO scheduled today.
“At this point of time, one can do nothing except curtail costs and postpone capex plans. Those are the only immediate solutions we have. We are watching the markets closely and taking stock,” said a top official at a leading Indian conglomerate based in Mumbai.
CD rates have fallen up to 275 bps since Friday after the RBI announced liquidity injection of Rs 3.74 lakh crore into the system in an unscheduled bi-monthly policy announcement.
Physical documents, essential for banks to honour letters of credit, are currently unavailable, with the logistics industry virtually shutting down across large swathes of the planet.
Two large state-run banks are said to have subscribed to these money market instruments.
Axis Bank’s CDs traded as high as 7.75 per cent before RBI announced an unscheduled bi-monthly policy last Friday. These instruments are now trading in the range of 3.90-5.90 per cent across maturities running up to nine months.
There’s misconception among borrowers that RBI has given a loan waiver.
These transactions can be done for various duration ranging from overnight to as long as 365 days.
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