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.....

Key stories on business-standard.com are available to premium subscribers only.

Already a premium subscriber?

Subscribe to get an across device (Website, Mobile Web, Iphone, Ipad, and Android Phone applications) access to Premium content, Breaking News alerts, Industry Newsletters, Stock and Corporate news alerts, access to Archives and a lot more.