Top-rated companies tap into low money market rates as liquidity improves

The working capital cost for India’s top-rated companies has fallen significantly since the IL&FS-induced credit crisis a year ago.  They are now raising money very close to the overnight repo rate, as liquidity improves in the banking system to more than Rs 2.5-trillion surplus. Rates on AAA-rated papers up to one year have fallen from 8.51 per cent on November 27, 2018, to 6.1 per cent now, much sharper than a 100 basis points fall in the 10-year bond yield.  “On one hand there is this near assurance of easy monetary condition from the RBI (Reserve Bank of I.....

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