Reserve Bank of India will allow banks to unlock their corporate bonds for cash
To ease the liquidity crunch, the Reserve Bank of India and the Finance Ministry will soon allow banks to avail of a refinance facility by depositing their corporate bond holdings as collateral.
The proposal, pushed by some state-owned and private sector banks, was discussed recently by the government and the RBI. A favourable view has been taken,a government official told The Indian Express.
As on March 31, 2008, total bank investment in corporate bonds is estimated to be about Rs 80,000 crore. State-owned and private sector companies issue interest-bear ing bonds to raise funds and these are subscribed by banks, mutual funds, insurance companies, NBFCs, etc.
To read the full article, click here..
To read the ePaper, visit:
http://epaper.indianexpress.com/IE/IEH/2008/11/07/index.shtml
The proposal, pushed by some state-owned and private sector banks, was discussed recently by the government and the RBI. A favourable view has been taken,a government official told The Indian Express.
As on March 31, 2008, total bank investment in corporate bonds is estimated to be about Rs 80,000 crore. State-owned and private sector companies issue interest-bear ing bonds to raise funds and these are subscribed by banks, mutual funds, insurance companies, NBFCs, etc.
To read the full article, click here..
To read the ePaper, visit:
http://epaper.indianexpress.com/IE/IEH/2008/11/07/index.shtml
Labels: allow banks, bank investment, Corporate bonds, Finance Ministry, insurance companies, mutual funds, NBFCs, private sector banks, raise funds, RBI, refinance facility
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11:29 AM
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