INSUBCONTINENT EXCLUSIVE:
Mumbai: The Reserve Bank of India's (RBI) liquidity measures have prompted some private banks to issue new certificates of deposit and raise
cash.
IndusInd bank raised Rs 5,100 crore in just two days, and RBL tapped the market after an interval raising about Rs 825 crore on
Tuesday.
State-owned banks with robust cash positions are the lenders, dealers said
Daily volumes were in the range of Rs 5,000 crore-Rs 7,000 crore after the central bank policy on Friday, dealers said
The money markets were shut on Wednesday, the first day of the financial year
IndusInd Bank obtained rates in the range of 7.75-8% across fourfive-six month maturities
The rates appear high, but not when its recent regulator-led bailout is considered.
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.
After
advancing the MPC last week, the RBI further eased liquidity measures to ensure Rs 3.74 lakh crore entered the system.