Market liquidity was in deficit mode in Q4 of last fiscal and RBI pumped in Rs 1.12 lakh crore in the period to sustain the market, according to the Finance Ministry quarterly data on public debt.
Market liquidity conditions, on an average basis, were mostly in a deficit mode during January-March 2019. The net average liquidity injection by the Reserve Bank under Liquidity Adjustment Facility (LAF) including MSF was Rs 52,364 crore during Q4 FY 19 (Rs 80,077.24 crore during Q3 FY 19).
The net average liquidity injection was to the tune of Rs 32,872 crore in January 2019, Rs 68,661 crore in February 2019 and Rs 55,559 crore in March 2019.
Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank conducted Open Market Operations (Purchases) for an aggregate amount of Rs 112,500 crore during January-March 2019.
The Reserve Bank also injected rupee liquidity for longer duration through long-term USD/INR Buy/Sell swap auction amounting to USD 5.02 billion(Rs 3456,100 crore)on March 26, 2019, the data stated.
Gross and net market borrowings of the Central government, which were budgeted at Rs 6,05,539.4 crore and Rs 3,90,120.5 crore, respectively, revised to Rs 5,71,000 crore and Rs 4,22,736.9 crore for FY19.
During Q4 of FY19, the Central Government issued dated securities worth Rs 1,56,000 crore as compared to Rs 67,000 crore in Q4 FY 18. Net amount raised through market borrowings was also higher at Rs 1,22,873.98 crore in Q4 FY 19 as against Rs 67,000 crore in Q4 FY 18, said the report.
The gross amount raised through treasury bills (91-day, 182-day, and 364-day treasury bills) during Q4 FY 19 amounted to Rs 1,81,219.16 crore while total repayments were Rs 2,94,409.03 crore.