MUMBAI : The result of Reserve Bank of India's Targeted Long-Term Repos Operations (TLTRO) conducted over three tranches have shown that banks have invested only in high-rated debt papers of companies.
Contrary to the regulator's expectation, banks have chosen to invest in bonds with AA rating and above. The TLTRO was introduced by the RBI to help companies, including financial institutions, manage their cash flow issues in the wake of the covid-19 outbreak.
The guidelines stipulate that banks could access 3-year funding and use it to invest in investment grade corporate bonds, commercial paper and debentures.