RBI gets Rs 1.23 lakh crore bids for Rs 25,000 crore LTRO
The reversal date of these repos is February 23, 2021, RBI said in a release.
By ETMarkets.com |
BCCL
NEW DELHI: The Reserve Bank of India (RBI) on Monday conducted the second long-term reverse repo operation (LTROs) by conducting a one-year issue worth Rs 25,000 crore for which it received bids of Rs 1.23 lakh crore.
The reversal date of these repos is February 23, 2021, RBI said in a release.
The response to the LTRO has been so encouraging that bids crossed Rs 123,154 crore, implying a bid to cover ratio of 4.9.
The central bank allotted the bills on a pro-rata basis to 52 applicants with total allotted amount at Rs 25,021 crore, taking the pro-rata allotment percentage to 20.30.
Earlier in its maiden long-term reverse repo operation (LTROs) on February 17, the RBI conducted a three-year issue worth Rs 25,000 crore for which it received bids of more than Rs 1.944 lakh crore.
In case of oversubscription of the notified amount, the allotment would be done on a pro-rata basis. RBI will, however, reserve the right to inject marginally higher amounts than the notified amount due to rounding effects and the minimum bid amount is Rs 1 crore and in its multiples.
On February 13, the RBI had said the interest on LTROs would be compounded on an annual basis and would be conducted at the prevailing repo rate.
The reversal date of these repos is February 23, 2021, RBI said in a release.
The response to the LTRO has been so encouraging that bids crossed Rs 123,154 crore, implying a bid to cover ratio of 4.9.
The central bank allotted the bills on a pro-rata basis to 52 applicants with total allotted amount at Rs 25,021 crore, taking the pro-rata allotment percentage to 20.30.
Earlier in its maiden long-term reverse repo operation (LTROs) on February 17, the RBI conducted a three-year issue worth Rs 25,000 crore for which it received bids of more than Rs 1.944 lakh crore.
In case of oversubscription of the notified amount, the allotment would be done on a pro-rata basis. RBI will, however, reserve the right to inject marginally higher amounts than the notified amount due to rounding effects and the minimum bid amount is Rs 1 crore and in its multiples.
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On February 13, the RBI had said the interest on LTROs would be compounded on an annual basis and would be conducted at the prevailing repo rate.
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