April 17, 2021
RBI announced ltro for non banking financial companies

Non-Banking Financial Companies(NBFCs) to get Liquidity support of 50,000 Crore from RBI

RBI announced liquidity support of  ₹50,000 crore to non-banking financial companies (NBFCs).

This liquidity boosting will  led to strong gains in banking and financials stocks.

Banks can avail ₹50,000 crore through the targeted long-term repo operation.

The first auction of LTRO for ₹25,000 crore will be on 23 April.

Details of  LTRO (Long-term repo operation)

Of the 50% stipulated for smaller entities.

Of the 10% has to be invested by banks in securities of MFIs.

Of the 15% in securities issued by NBFCs with asset size of ₹ 500 crore and below.

Of the 25% in securities issued by NBFCs with assets size between ₹500 crore and ₹5,000 crore.

Sensex up after RBI announced to provide liquidity support to non-banking financial companies

The 30-share Sensex gained 986.11 points.

Stocks value like TCS , Reliance Industries, ICICI Bank ,Axis Bank, HDFC Bank  witness the highest gain in recent times.

The Nifty closed at 9,266.75, up 273.95 points .

RBI as well as Government of India taking every possible way to combat the lockdown impact on the economy. Specially RBI has been very generous to maintain liquidity  in recent times particularly after the lockdown began.

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