STCI Primary Dealer Ltd.

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Inter- Corporate Deposits


 
An Inter-Corporate Deposit (ICD) is an unsecured borrowing by corporates and FIs from other corporate entities registered under the Companies Act 1956. The corporate having surplus funds would lend to another corporate in need of funds. This lending would be an uncollateralized basis and hence a higher rate of interest is demanded by the lender. The short term credit rating of the borrowing corprorate would determine the rate at which it would be able to borrow funds. Further the credit spreads demanded even for the top rated corporates would be higher than similar rated banks and the rates on ICDs would higher than those in the Certificate of Deposit (CD) market. The tenor of ICD may range from 1 day to 1 year, but the most common tenor of borrowing is for 90 days.
 
Primary Dealers are permitted to borrow in the ICD market. The borrowing under ICD is restricted to 150% of the Net Owned Funds and the minimum tenor of borrowing is for 7 days. Primary Dealers cannot lend in the ICD market.
 
STCI Primary Dealer Ltd. borrows funds in the ICD market. The company has a credit rating of ‘A1+’ from ICRA and CRISIL for its Short Term Debt Programme. Corporates interested in placing deposits with us may contact on 022 6620 2213/232.
 
 
 

Latest News

RBI MPC
In the second bi-monthly monetary policy for FY21, the RBI Monetary Policy Committee unanimously decided to maintain status quo on policy rates, given the current growth-inflation dynamics. The Repo rate is unchanged at 4%, the reverse repo rate at 3.35%.The bank rate and the Marginal Standing Facility rate remain unchanged at 4.25%.
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CPI
Consumer Price Index (Combined) for August 2020 printed below market expectations at 6.69% on a year on year basis as compared to 6.73% in July 2020.
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Index Of Industrial Production (IIP)
IIP growth for July 2020 printed better at -10.4% as against -15.8% recorded in June 2020, on a year on year basis.
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WPI
Headline WPI inflation for August 2020 printed higher than market expectations at 0.16% as compared to -0.58% in July 2020, on a year on year basis, mainly on the basis of price uptick in primary articles and manufactured products.
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Real gross domestic product for Q1 FY21 contracted sharply by 23.9%. A contraction was expected in light of the effects of the lockdown on economic activity.
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