RBI’s bid to infuse liquidity draws tepid response from banks
Muted response to TLTRO 2.0 shows how hesitant banks are to invest in non-bank financiers and micro lenders
RIL raised ₹8,500 crore and is looking to raise another ₹3,000 crore via bonds. HDFC raised ₹2,500 crore
The Reserve Bank of India’s (RBI) attempts to provide liquidity to the market at low rates has hit a wall of risk aversion. Lenders on Thursday bid for and borrowed ₹12,850 crore, a little more than half of the ₹25,000-crore on offer from RBI’s second edition of targeted long-term repo operation (TLTRO 2.0), meant for liquidity support to smaller non-bank financiers and microfinance institutions. The lacklustre response was despite funds being made available at the repo rate of 4.4%.