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Mutual funds make limited borrowing from Reserve Bank's credit lines

Experts say fund houses preferred to sell bonds to banks, instead of borrowing

Topics
Tata Mutual Fund | Coronavirus | NBFC investment

SI Reporter 

The credit lines opened by the Reserve Bank of India (RBI) for debt mutual funds (MFs) saw limited participation, with Rs 2,430 crore of the Rs 50,000-crore liquidity window utilised.

According to industry participants, MFs showed preference for selling securities to banks and other counter parties, instead of availing of fresh borrowing through RBI’s credit lines. “MFs looked to sell debt papers in the markets to banks or other counter parties. As a result of this selling, debt papers of some non-banking financial companies ...

First Published: Fri, May 15 2020. 18:10 IST
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