RBI plans Rs 6,000 cr pvt placement

RBI plans Rs 6,000 cr pvt placement
ENS ECONOMIC BUREAU

Mumbai, Aug 7: The Reserve Bank of India on Monday announced the private placement of the 11.43 per cent 2015 for Rs 6,000 crore. This placement follows another worth an equal amount done on July 28 -- the 11 per cent 2000 and 11.32 per cent 2010 for Rs 3,000 crore each.

With this, the Centre has completed over 50 per cent of its budgeted borrowings. The budgetted gross borrowing is Rs 1,168,61 crore with the net at Rs 76,383 crore. These figures before the private placement on Monday stood at Rs 52,183 crore and Rs 35,026 crore.

"The latest placement will take considerable pressure of the market", a debt market analyst with a primary dealership said.

Call rates went to an intra-day high of 12 per cent on Monday with the Reserve Bank sucking out a cumulative amount of Rs 8,260 crore through its one-day repos at 12.50 per cent and the four-day repos today at 14.50 per cent -- Rs 4,125 crore through the one-day repos and Rs 4,135 crore through the four-day one.

The four-day repos rate has risen to 14.5 per cent from 10 per cent since last Thursday when it was introduced as an additional measure to mop up liquidity after the weakness in the rupee. The one-day repos rate has risen to 12.5 per cent from 8.25 per cent over the same period. On Monday, the rupee again fell by 17 paise on Monday to an intra-day low of 45.5750/59.

"With utilised tier-1 refinance at Rs 13,000 crore, call rates are expected to go up if the repos succeeds in mobilising similar amounts on Tuesday", I-Sec said in a report. The outstanding amount in repos now stands at Rs 11,000 crore.