{"id":6854,"date":"2020-07-17T09:22:44","date_gmt":"2020-07-17T09:22:44","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=6854"},"modified":"2020-07-17T09:22:44","modified_gmt":"2020-07-17T09:22:44","slug":"banks-holdings-of-corporate-notes-at-record-high-after-policy-measures-amid-coronavirus","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=6854","title":{"rendered":"Banks holdings of corporate notes at record high after policy measures amid coronavirus"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2020059\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-313.jpg\" alt=\"The growth in deposits for these top five private banks in FY20 was 18.8% y-o-y, up from 18.5% in FY19, while the loan growth declined to 15% from 19.1%.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2020059\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-313.jpg\" alt=\"The growth in deposits for these top five private banks in FY20 was 18.8% y-o-y, up from 18.5% in FY19, while the loan growth declined to 15% from 19.1%.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2020059\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/1-313.jpg\" alt=\"The growth in deposits for these top five private banks in FY20 was 18.8% y-o-y, up from 18.5% in FY19, while the loan growth declined to 15% from 19.1%.\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/07\/1-313.jpg 660w, https:\/\/images.financialexpress.com\/2020\/07\/1-313-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/07\/1-313-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/07\/1-313-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/07\/1-313-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/07\/1-313-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/07\/1-313-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">Total holdings of corporate bonds and commercial paper held by local banks surged to a record of almost 7 trillion rupees ($93 billion) in late May.<\/span><\/figure>\n<\/div>\n<p>Indian banks boosted their holdings of rupee notes from companies to an all-time high recently, in a sign that policy measures aimed at boosting funding to companies during the pandemic are working. Total holdings of corporate bonds and commercial paper held by local banks surged to a record of almost 7 trillion rupees ($93 billion) in late May, data from the Reserve Bank of India this week show. The central bank extended a\u00a0$50 billion\u00a0emergency credit line to lenders in March to spur them to boost financing to companies squeezed by the pandemic and an economic contraction caused by steps to contain it.<\/p>\n<p>Indian borrowers have been rushing bond deals to market in recent weeks, after government and central bank measures to support companies pushed the average yield on rupee notes to the lowest since 2004 earlier this month. Lower-rated companies have also\u00a0benefited\u00a0from those initiatives, with issuance from weaker names rising to a 15-month high in June, rebounding from a plunge in April and May.<\/p>\n<p>With India\u2019s central bank forecasting the economy will contract this fiscal year for the first time in more than\u00a0four decades, the bond market also gives banks, wary of defaults, the ability to invest in the debt of top-rated companies.<\/p>\n<p>\u201cWith the banking system awash with cash, there is far more potential for banks to boost bond purchases, especially in the better-rated category,\u201d said Jindal Haria, a director of financial institutions at India Ratings &amp; Research. \u201cBanks are keen to invest in bonds of the big companies rather than lend money because of the heightened risk aversion.\u201d<\/p>\n<figure><picture><source srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iS6Tfw1jCu04\/v0\/piNvaTs1gp8202qz_dewi2PvPDETo3MkHBrbPW_GR81uzDParBy7STNsGox.ps98SbSu48UitGf0c\/814x-1.png\" media=\"(min-width: 769px)\"\/><source srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iS6Tfw1jCu04\/v0\/piNvaTs1gp8202qz_dewi2PvPDETo3MkHBrbPW_GR81uzDParBy7STNsGox.ps98SbSu48UitGf0c\/300x-1.png\" media=\"(min-width: 600px)\"\/><source srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iS6Tfw1jCu04\/v0\/piNvaTs1gp8202qz_dewi2PvPDETo3MkHBrbPW_GR81uzDParBy7STNsGox.ps98SbSu48UitGf0c\/300x-1.png\"\/><\/picture><\/figure>\n<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/banks-holdings-of-corporate-notes-at-record-high-after-policy-measures-amid-coronavirus\/2026972\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Total holdings of corporate bonds and commercial paper held by local banks surged to a record of almost 7 trillion rupees ($93 billion) in late May. Indian banks boosted their holdings of rupee notes from companies to an all-time high recently, in a sign that policy measures aimed at boosting [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6855,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-6854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/07\/1-313.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/6854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6854"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/6854\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/6855"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}