The Reserve Bank of India on Monday said it has received Rs 48,856 crore of bids in the fourth long-term reverse repo operation (LTROs) conducted for an amount of Rs 25,000 crore with a 3-year tenor. The RBI received 37 bids in the LTRO with a reversal date on March 7, 2023. “The total bids that were received amounted to Rs 48,856 crore, implying a bid to cover ratio (i.e., the amount of bids received relative to the notified amount) of 2,” RBI said in a release.
The RBI allotted an amount of Rs 25,021 crore, with a pro-rata allotment percentage to 51.18 per cent. Last week, the apex bank received Rs 1.719 lakh crore in the LTRO conducted for an amount of Rs 25,000 crore with a 3-year tenor.
The RBI conducted two LTROs with three-year and one-year tenors for Rs 25,000 crore each on February 17 and February 24, respectively.
Additionally, the central bank is also conducting two-term repo auctions for shorter tenors to address any additional demand for liquidity, and to provide flexibility to the banking system in its liquidity management towards the year-end.
It will also conduct LTROs of Rs 25,000 crore each on March 30 and March 31.