One bank bids Rs 200 crore under special Repo facility

Mumbai, Oct 15 (UNI) Banks continued to show disinterest over the special 14 day nine per cent repo facility for Rs 20,000 crore with only one bank bidding for Rs 200 crore.

RBI introduced the facility yesterday in an attempt to enable Banks neet the liquidity requirements of Mutual Funds in view of the current crisis facing the sector due to the global financial melt down.

Yesterday, four banks utilised the facility to raise Rs 3,500 crore and RBI today announced that the facility would be continued until the entire quantum of amount was utilised on a cumulative basis.

The two LAF auctions and one day repo auctions continued to attract the banks with as many as 64 bids accepted by RBI for a total amount of Rs 55,340 crore.

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