Wednesday, August 21, 2013

Bailing out banks, the RBI way

..........With the central bank taking a call on this, state-owned banks will come back to the market. Till the first half of Tuesday, there weren’t too many buyers in the market and even a small deal had an exaggerated impact on yields. RBI’s action will bring volume back, which is critical for stability, but it has sent a wrong signal to the punters in the bond market.

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