IMD to cross RIB mopup, bring in $4.5bn

IMD to cross RIB mopup, bring in $4.5bn
ENS ECONOMIC BUREAU

Nov 5: Despite the absence of participation by the US market, the total mobilisation of State Bank of India's India Millennium Deposit (IMD) scheme will exceed the Resurgent India Bonds' $4.23 billion when it closes on Monday. Estimates put the expected IMD mop-up to be around $4.5 billion.

``The response has been quite good and we are expecting a higher mobilisation than RIB this time,'' said a top official of the bank, adding that the final figure will be known by Tuesday afternoon.

The IMD has already collected over $3 billion by Friday. SBI had targetted a minimum of $2 billion for the IMD.

Apart from the attractive rate, the aggressive marketing of the collecting banks have added momentum to the entire exercise.

Market reports suggest that the foreign banks are offering attractive incentive to mobilise the funds. Around 50 per cent of the collected fund will be parked with various banks, which are helping the SBI to mobilise deposits for IMD. Substantial inflow of funds from the Middle East market has happened between Saturday to Monday. The bank was expecting around 40-45 per cent of total IMD from this segment of the market.

IMD had opened on October 21 and was extended by another six days beyond the scheduled closing date of October 31.