RBI gets offers worth Rs 1.13 lakh crore on target LTRO

MUMBAI: The Reserve Bank of India () said on Thursday that it received offers worth Rs 1.13 lakh crore in the long-term repo operation () carried out in the amount of Rs 25,000 crore with a term of three years.

The RBI received 18 bids at the auction. Total bids received amounted to Rs 1.13 lakh crore, implying a bid-to-hedge ratio, the number of bids received relative to the reported amount of 4.5, RBI said in a statement.

It allocated an amount of Rs 25,016 million at a proportional allocation percentage of 22.04 percent.

Last month, RBI had announced to conduct auctions of specific term repositories of up to three years term of appropriate sizes for a total amount of up to Rs 1.00 billion rupees to help banks to resolve any funding mismatch.

The central bank said that the liquidity used under the TLTRO by banks should be deployed in investment grade corporate bonds and non-convertible bonds above the pending level of their investments in these as of March 27, 2020.

Banks are required to acquire up to 50 percent of their incremental holdings of eligible instruments from primary market issues and the remaining 50 percent from the secondary market, including mutual funds and non-bank financial companies, RBI had said.