Banks and companies rush to raise funds at low rates in the bond market
MUMBAI: Banks and companies are scrambling to raise money in the Indian debt market amid fears that the Reserve Bank of India may raise interest rates at its December monetary policy meeting. Fundraising by companies and banks from the bond market has increased sharply in the last two weeks. According to data from BSE and NSE bidding platforms, companies and banks have raised a total of Rs. 2.3 crore, of which Rs. 15,150 crore. Banks and non-banking finance companies (SHMs) have so far raised Rs. 206 crore and Rs. 2 crore have been raised. In the secondary market, yields on corporate bonds are trading between 4.5% -3.5% on three-year securities, 7.5-7.5% on five-year papers and 6.5-2.5% on 10-year securities. Is. Market experts are of the view that RBI may raise reverse repo rate and make repo rate operational. The RBI is now trying to withdraw money from the system through various means, including variable rate reverse repo (FEE), to slow down the liquidity in the system through R...