RBI injects Rs9,857 crore into system ahead of Rs12,000-core government bond sale
18 Feb 2012
The Reserve Bank of India (RBI) on Friday bought bonds worth Rs9,857.42 crore through open market operations (OMO), ahead of a Rs12,000 bond government bond sale on 24 February.
The RBI targeted to infuse Rs10,000 crore through purchase of four dated securities on offer as part of its programme to infuse liquidity.
RBI subscribed to all of them, which included 8.07 per cent government paper maturing in 2017 for Rs1,525 crore, the 9.15 per cent 2024 paper for over Rs3,951.35 crore, the 8.28 per cent 2027 paper for Rs2,897.55 crore and the 8.97 per cent 2030 paper for Rs1,483.51 crore, totaling Rs9,857.42 crore.
RBI has infused nearly Rs92,000 crore into the financial system in ten tranches in the last two months.
While RBI had earlier hinted at more OMOs to ease liquidity, it denied that the operations are aimed at reducing the cost of borrowing for the government.
The government, on Friday also announced the sale of three dated securities for Rs12,000 crore
The RBI, on behalf of the government will sell (re-issue) 8.19 per cent 2020 government stock for a notified amount of Rs3,000 crore, 9.15 per cent 2024 stock for a notified amount of Rs6,000 crore and 8.97 per cent 2030 stock for Rs3,000 crore on 24 February.
