Lenders had already raised Rs 50,000 crore in two tranches from the RBI to on-lend to corporates. This led to several top companies
raising funds from banks over the last one week, said the person cited above, adding, “banks are currently flush with funds and they want to lend it to top-rated firms.”
Besides this special window, the central bank also reduced the cash reserve ratio (CRR) of banks by 100 bps to 3 per cent of net demand and time liabilities, with effect from the reporting fortnight beginning March 28, for a period of one year.
While Reliance Industries is investing in the telecom business — mainly in capital expenditure, the Tata group’s holding company consistently invested in new businesses like financial services and aviation during FY20. This included a Rs 1,000-crore fund infusion into Tata Capital Financial Services, besides that in its two airlines Vistara and AirAsia India.