With mounting expectations of cash easing measures in the mid-term monetary policy review banks rushed for the state government securities.
At Tuesday’s auctions of state development loans banks
Faced with low credit growth and deteriorating quality of assets this financial year, bank margins have come under pressure in the third quarter of this financial year.
Net interest margins,
Bond prices firmed sharply, as banks and primary dealers stepped up purchases anticipating cash easing measures by the Reserve Bank of India, later during the month.
The price of the
Spreads between sovereign and corporate bonds have widened to over 100 basis points with mounting risk aversion to credit.
The spreads were barely 45 basis points for public sector issuers
Post new comment