RBI fixes 9.18% interest for Floating Rate Bonds, 2015 (II)

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    RBI fixes 9.18% interest for Floating Rate Bonds, 2015 (II)
    The Reserve Bank of India on Thursday fixed 9.18 per cent per annum interest rate on the Floating Rate Bonds, 2015 (II) for the year (August 10, 2014 to August 9, 2015).
     

    It may be recalled that the rate of interest on the FRB, 2015(II) was set at a mark-up (as decided in the auction held on August 9, 2004) over and above the variable base rate.

    The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices emerging in the three auctions of Government of India 364 day Treasury Bills held up to the commencement of the respective annual coupon period.

    The variable base rate based on the average rate of the implicit yields at cut-off prices of the said last three auctions of Government of India 364 day Treasury Bills works out to 8.68 per cent.

    The mark-up decided in the auction held on August 9, 2004 was (+) 0.50 (plus 0.50) percent. The coupon rate has been fixed accordingly.

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