RBI to conduct long-term repo operations on February 17th and 24th to improve liquidity in the banking system and facilitate flow of credit to the economy.
In It For the Long Term
The RBI is set to conduct the first tranche of its long-term repo operations on February 17th with three-year repo of ?25,000cr ($3,505m), followed by another on February 24th for an equal amount.
The move is aimed at providing cheaper money to banks at the repo rate, improving liquidity in the banking system and facilitating flow of credit to the economy.
Currently, the repo operations are of short-term, usually overnight, wherein banks can borrow money from the RBI at the prevailing repo rate. [Indian Express]
Value Lies in the Eyes of the Beholder
The Life Insurance Corporation of India (LIC) is looking to offload its 51% stake in IDBI Bank ahead of the RBI mandated 12-year timeline in a bid to unlock value in IDBI Bank ahead of its proposed IPO.
LIC owns 51% in the lender after it acquired shares from the government in January last year. The government still owns 47% stake which it plans to divest in the secondary market. [ET]
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