The RBI has exempted bank investments in equities and bonds issued by financial institutions from the ceiling of five per cent of incremental deposits over the previous year. According to a circular issued by the RBI on Wednesday, investments by banks in equities and bonds issued by the FIs will be outside the ceiling of five per cent prescribed for that in shares and debentures of corporate bodies. The move is expected to provide a boost to investments by banks in bonds issued by corporates considering several floating rate bond issues by private corporates met with a poor response due to the ceiling.
No comments:
Post a Comment