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₹40,000 crore amid slowdown concerns

India city Mumbai covid-19 2020
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MUMBAI: Many big companies in India look to absorb large amount of cash from the debt markets via multiple debt issuances to banks, which now have access to cheap money from the Reserve Bank of India (RBI).

At last count, Reliance Industries Ltd, Larsen and Toubro Ltd, Mahindra and Mahindra, Tata Steel Ltd, TVS Motors Ltd and NHPC were looking to raise at least ₹37,000 crore to keep themselves cash-ready for the prolonged slowdown.

Banks can borrow at 4.4% from the RBI to buy bonds issued by Indian companies, under the Targeted Long Term Repo Operation (TLTRO).

Large Indian companies are in a hurry to raise money to revive industrial activities and endure the lingering impact of covid-19 lockdown.

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