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The long-term repo operation (LTRO) of one-year tenor on Monday saw good response, with banks bidding almost five times the notified amount of ₹25,000 crore.
Second operation
This was the second operation that was conducted to provide the banking system with durable liquidity at reasonable cost (the repo rate of 5.15 per cent).
The first LTRO of three years’ tenor last Monday saw an overwhelming response, with banks placing bids for almost eight times the notified amount of ₹25,000 crore. The total bids that were received in Monday’s LTRO amounted to ₹1,23,154 crore, implying a bid-to- cover ratio (that is the amount of bids received relative to the notified amount) of 4.9, the RBI said in a statement. The number of bidders were 52.
Notified amount
As against the notified amount of ₹25,000 crore, the amount allotted to the bidders was ₹25,021 crore.
In its Statement on Developmental and Regulatory Policies, issued on February 6, the RBI said that from the fortnight beginning on February 15, it would conduct term repos of one-year and three-year tenors of appropriate sizes for up to a total amount of ₹1-lakh crore at the policy repo rate.
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