Wednesday, March 3, 1999
IDBI unlikely to cut coupon on Flexibond-VI
The Reserve Bank directive cutting bank rates, repo rates and cash reserve ratio (CRR) is likely to trigger an investors' rush for the IDBI's Flexibond-VI issue. The IBDI Flexibond-VI issue, which opened on February 22 to garner Rs 750 crore promises annualised interest rate of 14%.
Reserve Bank yanks long-term rates down by 20-25 basis points
The Reserve Bank of India (RBI) gave a clear indication through its newly released price list on Monday that it wants the yields of long-term securities to fall by at least 20-25 basis points. The move follows the central bank's decision to cut the repo rate, bank rate, and cash-reserve ratio (CRR) at one stroke.
Primary dealers, states stand to benefit from rate cut
A whole family of interest rates linked to the bank rate are headed downwards with the Reserve Bank cutting the latter to 8% from 9% on Monday. The move is likely to transalate into profits for primary dealers (PDs) in the government securities market.
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