Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

MSF Borrowing Goes to 70,000 Cr.

29 Aug 2013Deepak Shenoy1 min read

Quick Facts

What is "MSF Borrowing Goes to 70,000 Cr." about?
What category is this article in?: Fixed Income
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 29 August 2013.
How long does this article take to read?: 1 min read
What topics does this article cover?: MSF

In the light of the liquidity squeeze that RBI has been doing, the impact seems to be hitting the market now. After three days of hectic auctions (22,000 cr, of Cash Management Bills, 12,000 cr. in T-Bills, 8,000 cr. of State Government Loans and 1,000 cr. of Inflation Protected Securities) we now see the impact of low liquidity: Banks are borrowing at the 10.25% MSF rate.

And nearly 70,000 Cr. (700 bn) of it.

Read more about the Marginal Standing Facility.

This is going to get interesting. Now wondering when banks will raise deposit rates.