Finance
Sock JohnsonRBI's VRR Auction: Big Banks Pass, Demand Takes a Dive!
Ladies and gentlemen, The Rock is here to drop the truth bomb on the RBI's VRR auction! On Tuesday, demand was as flat as a pancake, with big banks sitting this one out. Why? They're swimming in liquidity and scoring better returns elsewhere! With bids only hitting Rs 48,014 crore against a colossal Rs 1.5 trillion, it’s clear: the banks are playing it smart. Can you smell what the RBI is cooking?
few days ago | Anjali Kumari
Quick rundown
1.RBI's VRR auction saw low demand due to surplus liquidity.
2.Large banks opted for better returns in the tri-party repo market.
3.Auction cut-off rate was set at 5.26%, with bids below the target.
4.Net liquidity surplus in the banking system was Rs 75,483 crore.
5.Weighted average call rate slightly decreased to 5.27%.
Quick rundown
1.RBI's VRR auction saw low demand due to surplus liquidity.
2.Large banks opted for better returns in the tri-party repo market.
3.Auction cut-off rate was set at 5.26%, with bids below the target.
4.Net liquidity surplus in the banking system was Rs 75,483 crore.
5.Weighted average call rate slightly decreased to 5.27%.