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 view of the current and evolving macroeconomic situation and the need to provide further liquidity support, MPC voted to reduce the policy repo rate by 40 bps in an unscheduled meeting held on May 22, 2020. Currently the key policy rates stand as follows: Repo Rate: 4.00%, Reverse Repo Rate: 3.35% and Marginal Standing Facility Rate at 4.25%.
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CPI
Due to the Lockdown announced by the government in the wake of the COVID-19 crisis The CPI combined General Index was not published for the month of May-20. However, some major indices have been published with available information.
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Index Of Industrial Production (IIP)
Index for Industrial Production for the month of Apr-20 came in at 56.3 against the index print of 117.7 in Mar-20. However, only the index was released by MOSPI and not the growth rate as most of the responding units for IIP reported zero production in the month of Apr-20.
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WPI
Wholesale Price inflation printed at -3.21% for May-20, much lower than market expectations as compared to the previous reading of 0.42% for Mar-20, as all the three sub-groups showed contraction. WPI index was not published for the month of Apr-20 amid the unavailability of price data due to the nationwide lockdown.
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CFPI
Food inflation (CFPI) tapered a bit from 10.5% to 9.3% mainly on the basis of vegetable price inflation cooling off to single digits at 5.3% YoY for the first time since Aug-19.
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