Couple of noteworthy changes have happened in the recent past (i) there is a revision of single and group borrower exposure limit (ii) an overall ceiling on exposure of an entity to the banking system has been mandated. These developments would push the corporates to gradually shift to markets for meeting their funding requirements.
In the financial market, the overnight call rate is generally moving around 0.25%. The amount of funds outstanding in the call money market has increased slightly. As for interest rates on term instruments, those on contracts maturing beyond the year-end have risen somewhat. The Japan premium remains negligible. Yields on long-term government bonds are generally moving in the range of 1.8-1.9%.