BORROWING COSTS HIT 10-YR LOW

MUMBAI: The cost of borrowing through the financial markets is now at a decade’s low for Indian companies thanks to abundant liquidity, the Reserve Bank of India’s (RBI) financial stability report (FSR) said.

“The spread of threeyear Aaa-rated corporate bond over similar tenor government securities has decreased from 320 bps on March 26, 2020 to 114 bps on June 26, 2020 for NBFCS. Lower borrowing costs, coupled with the deployment of TLTRO funds, have led to record primary issuance of corporate bonds of ₹2.09 lakh crore in the first quarter of 2020-21,” the report said.