The banks that hold government bonds much beyond the mandated levels are those with strong retail franchise and a lot of surplus funds.
Tight liquidity, slump in deposit growth, and banks’ desperation to match their assets and liabilities may keep interest rates higher.
Yields on benchmark ten year bonds fall 6 bps from the levels of 7.80%, as gross borrowing for financial year ending 2014 has risen by 11%.
Loss-making MTNL is waiting for a sovereign guarantee from the government to raise Rs 3,000 crore through bonds
In 2012-13, nine state-run companies were allowed to raise Rs 60,000 crore by issuing tax-free bonds, against Rs 30,000 crore in the previous year.
The size of the issue has not been decided yet, typically the benchmark size of a dollar bond 144A REG S offering is $500 million.
SEBI received bids for Rs34,984 crore of corporate bonds where the auctioned amount was Rs 26,925 crore.
Power Grid Corporation plans to raise Rs 3,000 crore by selling bonds in the latest rush to raise funds amid an uncertain rate scenario.
The National Payments Corporation is prodding banks to sign up for a software that would map customer spending and throw up alerts.
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