Synopsis
Within three weeks of launching the rescue act, the RBI s rate setting panel s meeting got advanced to deliver a deep cut of 0.70 per cent in key rates, a reduction in cash reserve ratio by 1 percentage point, and an announcement of a three-month repayment moratorium on loan repayments and an assured liquidity support through the Targeted Long Term Repo Operations (TLTROs).
PTI
Mumbai: Delivering a public speech hours after the RBI launched a rescue act for
Yes Bank on March 6, Governor Shaktikanta Das reiterated the RBI s affirmation to do whatever was needed to combat the coronavirus impact. On that day, India had only one confirmed COVID-19 infection, the World Health Organisation was five days off from declaring it as a pandemic and the financially debilitating lockdowns were not even on the horizon. Das promise on efforts to mitigate COVID-19 impact appeared as a footnote in news reports from the event.
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Fundraising via bonds hits a peak at ₹7.45-lakh crore
December 21, 2020
This is 8.3% more than last year’s ₹6.87-lakh cr
Riding on low-interest rates and policy reforms by the Reserve Bank of India (RBI), Indian corporates have raised the highest-ever sum of 7.45-lakh crore through rupee bonds this year.
This is 8.3 per cent higher than ₹6.87-lakh crore raised in 2019. A total of 5.12 lakh crore raised in 2018. With another 10 days for the year to end, companies are expected to raise another ₹20,000-25,000 crore.
“Covid-19 had an impact in March and April, when the companies had restrained from raising funds through bonds, but then there was a sharp recovery in May. The reasons included an ample liquidity in the system, lower interest rates and RBI’s introduction of Targeted Long-Term Repo Operations (TLTRO), which helped a lot in terms of corporates to issue more bonds,” said Ajay Manglunia, Managing Director and head institutional fixed income at JM Financial.
Synopsis
The central bank announced a series of liquidity easing measures as its response to the COVID-induced contraction in the economic activity since end of March this year.
Agencies
Former RBI governor Duvvuri Subbarao
MUMBAI: Unwinding of the easy liquidity conditions will be a major challenge for the Reserve Bank which has done well in preserving financial stability of the economy post the COVID-induced nation-wide lockdown, according to former RBI governor Duvvuri Subbarao While managing a crisis is extremely difficult, RBI had been successful in preserving the financial stability of the economy during the present crisis said Subbarao, the central bank is going through an extremely difficult situation when they do not have a benefit of hindsight.
Former RBI GovernorD Subbarao on Wednesday said that managing a crisis is extremely difficult and the central bank had been successful in preserving the financial stability of the economy during the present COVID-19 crisis. Addressing a virtual event organised by industry body CII, Subbarao noted that all actions of the RBI were driven by the dual objective of achieving financial stability and preventing a financial crisis, and secondly, transmitting money to productive sectors of the economy. While managing a crisis is extremely difficult, the RBI has been successful in preserving the financial stability of the economy during the present COVID-19 crisis, he said.