Reserve Bank of India (RBI) to purchase ₹1 lakh crore bonds via two OMO auctions.

Key facts

• The Reserve Bank of India (RBI) will conduct two open market operation (OMO) purchase auctions of ₹50,000 crore each on March 9 and March 13.
• The OMO purchases aim to infuse liquidity into the banking system ahead of mid-March advance tax outflows of approximately ₹2 lakh crore.
• Banking system liquidity averaged a daily surplus of ₹2.63 lakh crore in March, up from ₹2.53 lakh crore in February.
• The RBI purchased ₹12,715 crore of bonds on-screen in February and likely bought additional bonds in the first week of March.
• State Bank of India (SBI) saw its liquidity coverage ratio (LCR) fall to 125% in Q3 from 144% in Q2 due to strong credit growth outpacing deposit accretion.
• Vedanta Ltd plans to raise about ₹3,000 crore through domestic three-year and five-year non-convertible debentures offering coupons around 8.75% and 9% respectively next week.
• Bank of Baroda raised ₹10,000 crore via green infrastructure bonds.