Rakshitra December Issue

December 2013
C O N T E N T S
Managing Director's Message
Article
Repo Market - A Tool to Manage Liquidity in Financial Institutions
Infocus
Report on Trend and Progress of Banking in India - 2012-13
29
Briefing
Article Summary
Measuring Capital Adequacy Supervisory Stress Tests in a Basel World
48
What's New
50
Speeches
58
Market Roundup
Macro-Economic Overview
63
Market Overview
70
Key Macroeconomic Indicators

Domestic
78
World
80
Outstanding Government Debt
81
CCIL Indices
93
Primary Market Analysis
95
Statistics
97
Government Securities Market
100
Money Market
118
Foreign Exchange Market
125
Derivatives
131
Interest Rate Movement
134
Corporate Bonds
137
Milestones
146
Key Personnel
149
STATISTICS
TABLES
TABLE 1
DOMESTIC INDICATORS ......................................................................................................... 78
TABLE 2
WORLD ECONOMIC INDICATORS ...................................................................................... 80
TABLE 3
OUTSTANDING GOVERNMENT DEBT .............................................................................
81
TABLE 4
STATE DEVELOPMENT LOANS (SDLS) OUTSTANDING............................................
89
TABLE 5
CONSOLIDATED OUTSTANDING .......................................................................................
90
TABLE 6
ANALYSIS OF OUTSTANDING BONDS ..............................................................................
92
TABLE 7
INDEX COMPOSITION .............................................................................................................. 93
TABLE 8
INDEX PERFORMANCE ANALYSIS .....................................................................................
94
TABLE 9
SECURITIES & MONEY MARKET (PRIMARY) : COMPARATIVE DATA ..................
95
TABLE 10 :
LIQUIDITY ANALYSIS ................................................................................................................ 96
TABLE 11 :
CCIL SETTLEMENT DETAILS ................................................................................................. 97
TABLE 12 :
CATEGORYWISE BUYING ACTIVITY ..................................................................................
98
TABLE 13 :
CATEGORYWISE SELLING ACTIVITY ................................................................................
98
TABLE 14 :
COMPARABLE RATES (%) ......................................................................................................... 99
GOVERNMENT SECURITIES MARKET

TABLE 15 :
PROPRIETARY / CONSTITUENT SETTLEMENT ANALYSIS .......................................... 100
TABLE 16 :
DEAL SIZE ANALYSIS ................................................................................................................. 100
TABLE 17 :
INSTRUMENT WISE BREAKUP OF OUTRIGHT TRADES ........................................... 101
TABLE 18 :
TENOR WISE ACTIVITY - CENTRAL GOVERNMENT DATED SECURITIES ......
TABLE 19 :
NETTING FACTOR - FUNDS ................................................................................................... 103
TABLE 20 :
NETTING FACTOR: SECURITIES ........................................................................................... 103
TABLE 21 :
LIQUIDITY ANALYSIS FOR CENTRAL GOVERNMENT SECURITIES TRANSACTED

DURING THE MONTH ................................................................................
104
TABLE 22 :
MARKET SHARE OF TOP 'N' SECURITIES ........................................................................ 107
TABLE 23 :
MARKET SHARE OF MEMBERS IN OUTRIGHT SETTLEMENT ................................. 107
TABLE 24 :
MARKET SHARE OF TOP FIVE MEMBERS (CATEGORYWISE) ................................... 108
TABLE 25 :
TRADING PLATFORM ANALYSIS OF OUTRIGHT TRADES ........................................ 108
TABLE 26A :
WHEN-ISSUED TRADING DETAILS ..................................................................................... 109
TABLE 26B :
WHEN-ISSUED TRADING - HISTORICAL ......................................................................... 109
TABLE 27 :
MARKET SHARE IN PROPRIETARY TRADES ...............................................................
TABLE 28 :
MARKET SHARE IN CONSTITUENT TRADES ................................................................ 110
TABLE 29 :
TURNOVER RATIO .................................................................................................................... 110
TABLE 30 :
NET MARKET ACTIVITY IN G-SEC TRADING ................................................................ 110
102
109
TABLE 31 :
TRADING SUMMARY ................................................................................................................
111
TABLE 32 :
G-SEC TRADING ANALYSIS ....................................................................................................
112
TABLE 33 :
T-BILL TRADING ANALYSIS ...................................................................................................
113
TABLE 34 :
SDL TRADING ANALYSIS ........................................................................................................
114
TABLE 35 :
LIQUIDITY OF TRADES GREATER THAN 5 CRORE (G-SEC) ....................................
115
TABLE 36 :
LIQUIDITY DISTRIBUTION (G-SEC) ....................................................................................
117
MONEY MARKET
TABLE 37 :
MONEY MARKET COMPARISON .......................................................................................... 118
TABLE 38 :
CBLO TRADING...........................................................................................................................
TABLE 39 :
REPO TERM ANALYSIS .............................................................................................................. 119
TABLE 40 :
INSTRUMENTWISE SETTLEMENT OF REPO TRADES ................................................
TABLE 41 :
CROMS TRADING ACTIVITY .................................................................................................. 120
TABLE 42 :
CROMS HISTORICAL SUMMARY............................................................................................ 121
TABLE 43 :
TOP 5 SECURITIES - BASKET REPO .....................................................................................
121
TABLE 44 :
TOP 5 SECURITIES - SPECIAL REPO ....................................................................................
121
TABLE 45 :
DEALT TRANSACTIONS ON THE NDS-CALL PLATFORM .......................................... 122
TABLE 46 :
OTC DEALS REPORTED ON THE NDS-CALL SYSTEM .................................................. 123
TABLE 47 :
NDS-CALL HISTORICAL .................................................................................................
118
119
124
FOREIGN EXCHANGE MARKET

TABLE 48 :
FOREX SETTLEMENT ................................................................................................................
125
TABLE 49 :
FOREX TRADE TYPE ANALYSIS ...........................................................................................
126
TABLE 50 :
FOREX DEAL SIZE ANALYSIS ................................................................................................
126
TABLE 51 :
TENORWISE FORWARD TRADES ANALYSIS ...................................................................
127
TABLE 52 :
MARKET SHARE - FOREX ........................................................................................................ 127
TABLE 53 :
CATEGORYWISE FOREX ACTIVITY - DEAL TYPE ........................................................
128
TABLE 54 :
NETTING FACTOR - FOREX ...................................................................................................
128
TABLE 55 :
CLS SETTLEMENT ....................................................................................................................... 129
TABLE 56 :
CURRENCY WISE GROSS SETTLEMENT ...........................................................................
129
TABLE 57 :
TOP 5 CURRENCY PAIRS - CLS .............................................................................................
130
TABLE 58 :
TRADING DETAILS - FX CLEAR ............................................................................................
130
DERIVATIVES
TABLE 59 :
INTEREST RATE SWAP TRANSACTIONS (MATCHED) .................................................
131
TABLE 60 :
INTEREST RATE SWAP (MIBOR) MARKET SHARE ........................................................
131
TABLE 61 :
INTEREST RATE SWAP (MIFOR) MARKET SHARE ........................................................
132
TABLE 62
TOP N MARKET SHARE - IRS ..............................................................................................
132
TABLE 63
IRS TRADE SUMMARY (MATCHED) ...................................................................................
132
TABLE 64
OUTSTANDING POSITION IN IRS TRANSACTIONS ..................................................... 133
TABLE 65
NETTING FACTOR - IRS NON-GUARANTEED SETTLEMENT ................................
133
INTEREST RATE MOVEMENT

TABLE 66
SPREAD ANALYSIS - SDL ..........................................................................................................
135
TABLE 67
YIELD MOVEMENT .................................................................................................................... 136

CORPORATE BONDS
TABLE 68
PRIMARY MARKET ISSUANCE OF CORPORATE BONDS ............................................ 137
TABLE 69
ANALYSIS OF CORPORATE BOND ISSUANCE ................................................................ 138
TABLE 70
RATING ANALYSIS OF CORPORATE BOND ISSUANCES ...........................................
TABLE 71
TOP 5 ISSUANCES........................................................................................................................ 139
TABLE 72
SECTOR ANALYSIS ...................................................................................................................... 139
TABLE 73
CATEGORY ANALYSIS ...............................................................................................................
139
TABLE 74
NON-FIXED RATE BOND ISSUANCE ANALYSIS .............................................................
139
TABLE 75
CORPORATE BONDS TRADING DETAILS .......................................................................
140
TABLE 76
HISTORICAL SUMMARY .......................................................................................................
141
TABLE 77
TRADING ANALYSIS ...............................................................................................................
141
TABLE 78
RATING ANALYSIS ..................................................................................................................
142
TABLE 79
CATEGORY ANALYSIS ..........................................................................................................
142
TABLE 80
BOND TYPE ANALYSIS ...........................................................................................................
142
TABLE 81
SPREAD ANALYSIS ...................................................................................................................... 142
TABLE 82
TOP 25 TRADED CORPORATE BONDS .............................................................................. 143
138
CERTIFICATE OF DEPOSIT AND COMMERCIAL PAPERS

TABLE 83
CDs AND CPs TRADING DETAILS ........................................................................................ 144
TABLE 84
HISTORICAL SUMMARY - CP AND CD ............................................................................ 144
TABLE 85
TENORWISE TRADING ANALYSIS ....................................................................................... 145

CHARTS
CHART 1
ZERO COUPON YIELD CURVE .............................................................................................. 134
CHART 2
SOVEREIGN YIELD CURVE ....................................................................................................
134
Message from MD
Dear Colleagues,
The recent economic indicator data releases show challenging industrial
production scenario coupled with higher levels of wholesale and consumer
inflation. These negative factors affected market sentiment and market started
anticipating a hike in policy Repo rate to tackle inflation level. Liquidity situation is
slowly improving and banks are borrowing relatively lower amount in MSF window
of RBI. The support from RBI through term repo has also helped the market. The
stability of oil prices and fall in gold imports have helped in bringing down Current
Account Deficits (CAD) and this has helped the Indian Rupee to stabilize against
global currencies.
CCIL business volumes in Oct'13 decelerated in all segments except Forex. Daily
average volume of outright Government Securities transactions settled, decreased
by 12% while daily Repo transactions dropped by about 14%. Daily average Forex
settlement witnessed a marginal increase of 5% while CBLO daily average volume
dropped by 6%.
RBI has issued a notification on December 5, 2013 introducing cash settled Interest
Rate Futures on 10-year Government of India security. The cash settled Interest
Rate Futures (IRF) on 10-year Government of India security shall have as underlying
either a coupon bearing Government of India security or coupon bearing notional
10-year Government of India security with settlement price based on basket of
securities. The final settlement price for the IRF contract would be weighted
average price of the underlying security based on prices during the last two hours of
the trading on NDS-OM system. If less than 5 trades are executed in the underlying
security during the last two hours of trading, then FIMMDA price shall be used for
final settlement.
R. Sridharan
h
t
n
o
m
of the
CCIL Forex Segment has settled 34,418 deals on 29th November
2013, the highest recorded so far.
ARTICLE
Repo Market - A Tool to Manage Liquidity in Financial Institutions

Dr. Golaka C Nath
Abstract
Repo is used in India as an instrument for monetary policy by institutionalizing daily Liquidity
Adjustment Facility (LAF) which allows banks and Primary Dealers to manage their liquidity needs.
Liquidity stress in the market has an impact on the short term interest rate. Entities not having
adequate securities balances borrow funds from inter-bank uncollateralized call market and the call
rates are prone to liquidity shocks in the system. The spread between Call and Repo rates is likely to
widen when there is liquidity stress in the market. The study tried to find the determinant of the
spread. It found that LAF window activity as well as total money market activity has an impact on
the spread. In order to understand if the spread behaves in a different manner when the system has
excess liquidity vis--vis shortage of liquidity, a Regime Switching model using Goldfeld and
Quandt's D-method for switching regression was used. The tests found that the monetary policy is
stable in both the regimes and the effectiveness of monetary policy in both the regimes are not
statistically different.
For Correspondence with author - gcnath@hotmail.com
Dr. Golaka C Nath is Senior Vice President, Economic Research & Surveillance, Membership, HRD,
CCIL
CCIL
Keywords: Repo, CBLO, Call, India, RBI, liquidity, financial crisis, central bank refinancing, spread,
interbank market.
Monthly Newsletter December 2013
JEL classification: G10, G20, G21, E52, C30.
ARTICLE
Introduction
trillion in July'132, down 35 percent from a peak

of $7.02 trillion in the first quarter of 2008. Post
financial crisis, many regulations have been
framed to secure the banking business as the
transmission from banking channel hurts the
society most in the times of stress. Regulators
feel that reforming the repo market is the top
priority. They fear that repo market makes the
banks vulnerable to sudden collapse should
counterparties become nervous about doing
business with them for some reason, as
repeatedly happened around the time of the
financial crisis. The repo market is believed to be
a key channel through which the last Financial
Crisis was transmitted. Repo being a
Unlike the global repo market, Indian repo

market predominantly uses sovereign securities,
though repo is allowed on corporate papers. The
dominance of low-risk collateral means that it is
much less likely to transmit shocks to other
markets in case there is stress condition in the
market. Repo market in India does not pose a
systemic risk to the wider financial system.
CCIL
Repo is abbreviated form of Repurchase

Agreement - a form of lending and borrowing
mechanism used by Central Banks and Banking
and near Banking Institutions all over the world
to manage liquidity. Predominantly Repos are
used by an institution for managing short-term
liquidity fluctuations and not for funding
general balance sheet. However, institutions
may use the facility to fund leveraged positiontaking in various securities. A survey by
European Repo Council (ERC) of the
International Capital Market Association
(ICMA) in June'13 found that the total value of
the repo contracts outstanding on the books of
the 65 institutions was EUR 6.01 trillion,
compared with the EUR 5.6 trillion in December
2012, (EUR 4.6 trillion in December 2008 and
the pre-crisis peak of EUR 6.8 trillion in June
2007). The U.S. repo market shrunk to $4.6
collateralized transaction, repo lenders

demanded higher collateral for a given level of
cash lending during the crisis as asset prices
declined. Investors holding leveraged portfolios
of securities were required to post higher
margins. The funding shortfall forced investors
to sell assets which resulted in further decline in
asset prices, creating a 'vicious cycle'. The
problem was acute as a major part of the repo
market used non-sovereign papers for the repo
transaction. The financial market crisis
witnessed the demand for quality collaterals as
the value of the corporate papers started dipping.
More recently, the regulatory focus on repo
markets has intensified to ensure that the market
remains stable at the time of stress. The Basel III
Accord introduced quantitative liquidity
requirements that stress-test large-bank funding
practices and force firms to move from primarily
overnight funding to longer-term financing
arrangements. Additionally, the global
regulators are focusing on banks' reliance on
short-term funding and on reform measures to
more closely link capital and liquidity
regulation. These efforts are likely to materially
alter the way banks fund themselves and change
the repo market for the better.
Based on recent Federal Reserve data compiled from its 21 primary dealers.
ARTICLE
Repo is defined as an agreement in which one

party sells securities or other assets to a
counterparty, and simultaneously commits to
repurchase the same asset, at an agreed future date
at a repurchase price. The said repurchase price
would cover the original sell price plus a return
on the use of the sale proceeds during the term of
the repo. It is a financing arrangement used
primarily in the government securities markets
whereby a dealer or other holder of government
securities sells the securities to a lender and agrees
to repurchase them at an agreed future date at an
agreed price which will provide the lender with
an extremely low-risk return. Such a transaction
is called a repo when viewed from the perspective
of the supplier of the securities (the party
acquiring funds) and a reverse repo or matched
sale-purchase agreement when described from
the point of view of the supplier of funds. Repos
are hybrid transactions that combine features of
both secured loans and outright purchase and
sale transactions but do not fit cleanly into either
classification. The use of margin or haircuts in
valuing repo securities, the right of repo
borrowers to substitute collateral in term
Repo markets are generally separated into

markets for general and specific collateral.
In case of specific collateral, a piece of specific
collateral is identified in the repo contract
making it possible to obtain specified securities.
Repos can be divided into four broad categories (a) Classic Repo (US style); (b) Buy-Sell Back
Repo (Indian market follows this type) and (c)
Securities Lending for a fee and (d) Tri-party
Repo. Classic repo involves an initial sale of
securities with a simultaneous agreement to
repurchase them at a later date where the start and
end prices of the securities are the same and a
separate payment of "interest" is made. Classic
repo makes it explicit that the securities are only
collateral for the loan and the coupon income
will be accrued to the seller of the security. The
principal difference between a repurchase
1. Repo Market Microstructure
agreements, and the use of mark-to-market

provisions are examples of repo features that
typically are characteristics of secured lending
arrangements but are rarely found in outright
purchase and sale transactions. The repo buyer's
right to trade the securities during the term of the
agreement, by contrast, represents a transfer of
ownership that typically does not occur in
collateralized lending arrangements. Repos are
popular because they virtually eliminate credit
problems. Repos can be traced back to the birth
of Federal Reserve System and to the inception of
the Bankers' Acceptances market at the close of
World War I (in 1918). In 1923, the Fed began to
use short term repos against Governments as a
tool for altering bank reserves. Central Banks
around the world use Repos to moderate money
supply in the economy by way of providing
liquidity at the time of stress and absorbing
liquidity at the time of excesses.
CCIL
The objective of the current study is to

understand various dimensions of the Indian
repo market functioning and its important role
as a tool to manage liquidity in the system. The
rest of the paper is organized as follows: Section 1
details current repo market microstructure,
Section 2 details the RBI repo system, Section 3
details the market activity, Section 4 details the
types of collaterals used in the system, Section 5
details the statistical analysis of the market and
determinants of the spread and Section 6 gives
the concluding remarks.
ARTICLE
CCIL
agreement and a buy/sell- back stem from the fact

that repurchase agreements are always
documented, while buy/sell-backs are not
required to be documented as there are implicitly
two separate contracts. Most of the repo terms are
taken from standard legal agreements - General
Master Repo Agreement (GMRA). Buy/sell-back
agreements and securities lending versus cash
transactions have somewhat different legal and
accounting treatments but these are equivalent
economic functions and also referred to as repo
market transactions. Under a Tripartite repo, a
common custodian /clearing agency arranges for
custody as well as clearing and settlement of
repos transactions. The system starts with signing
of agreements by all parties and the agreements
include Global Master Repurchase and Tripartite
Repo Service Agreements. This type of
arrangement minimizes credit risk and can be
utilized when dealing with clients with low credit
rating.
10
The maturity of repo agreements typically fall

into at least three descriptive categories:
overnight, open and term. Overnight refers to
repos with a single-day maturity (this should also
typically cover repos conducted in the Indian
market on Fridays) and the Indian market uses
this form of the market quite efficiently. Term
maturity refers to repos that have a fixed
maturity longer than one day - recently Reserve
Bank of India (RBI) introduced term repo for 7
and 14-days on reporting Fridays to mitigate the
liquidity shortage in the system. Open maturity
repos are those transactions where both parties
have the option to terminate the repo each day.
The open maturity structure permits entities in
the repo transaction to continuously roll over
overnight repos. In a securities lending
transaction, two securities are swapped for a

certain period of time. This typically happens
when funds are perceived to have higher
reinvestment risk which may result in bid-ask
bounce for the repo seller of the securities.
Repo are used by traders to obtain cash or to
obtain securities. Repo and reverse repo are two
parts of the same transaction. A bank needing
cash but having required securities can enter into
a repo transaction with another institution by
selling the securities under repo to acquire cash.
In this case, the lender of the cash uses the
securities as collateral. Repo transactions are
typically used to fund long positions in
securities - used to build up leveraged long
positions in securities markets. A trader uses cash
raised through an initial repo transaction to buy
securities which, in turn, are repoed out to raise
more cash to buy more securities and so on. With
each transaction the leverage ratio is increased.
The maximum extent of leverage that can be built
up through this process is determined by the
margin or haircut. Haircut depends on the
credit worthiness of the borrower of funds and
the price volatility of the collateral. Haircuts for
low-risk borrowers like banks using less-volatile
collateral like sovereign bonds can be very low.
The Repo market is probably the lowest-cost
source of leverage. In the reverse case, a bank
might have short sold a particular security with a
view on future price of the security and would
like to borrow the same for delivery purpose. The
short sale position results in cash inflows which
can be used in the repo transaction to acquire
securities for delivery purpose as no naked short
sales are typically allowed in institutional
markets. Or a bank in India can enter into a
reverse repo transaction to borrow securities
ARTICLE
from another bank by lending cash but the

purpose of the same is to maintain regulatory
investment norms in Statutory Liquidity Ratio
(SLR). As Indian market follows a buy/sell-back
repo mechanism, it allows the borrower of the
security to use the same for achieving the SLR
level specified by RBI. In markets where interest
rate futures are liquid, securities are borrowed to
manage delivery against the deliverable positions
by the sellers in the futures market. Depending
on their uses, either the securities or the cash
serve as collateral for a particular transaction. In
the case of specific collateral repos, the
transaction enables participants to obtain
particular securities.
Repo yield depends on whether the transaction
involves general or specific collateral. In case of
general repo, the yield is roughly comparable to
other short-term money market interest rates. In
case of special repo, the yield reflects the value of
making and speculative activity are important

facets of the repo market. The repo lender of the
security has to maintain inventory of collaterals
and has to price the same in such a manner to
recover his holding cost and the security
borrower should make money from short sale
deals to make the same transaction viable. The
speculator takes a view on interest rate and
accordingly creates leveraged positions. Direct
trading of the repo rate itself is commonly
known as matched-book trading. It involves the
borrowing of securities or cash through the repo
markets with the intention of re-lending the cash
or securities at more favorable rates in the same
market. Speculative trading activity involves
taking a position on the basis of forecast of the
direction of interest rates - speculating on the
future direction of repo rates. If a trader expects
rates to rise, one could borrow money for term
and lend money overnight.
Figure: 1: Repurchase Agreement Structure

First Leg (Ready leg): Initial Transaction
Cash - Haircut
Security Buyer / Cash Lender
Second Leg (Forward Leg): Forward Contract

Cash + Interest
Security Seller / Cash Borrower
Securities
Security Buyer / Cash Lender
Security Seller / Cash Borrower
the collateral in the securities loan. In rare

circumstances, participants sometimes transact
CCIL
at negative special repo rates3. Repo market

facilitates arbitrage and speculative activity as it
allows a trader to take leveraged positions by
posting a small margin. Arbitrage, market-
The above figure can be better explained using an

example of Buy/Sell Back Repo. Bank A would
like to do a repo to borrow funds from Bank B
using a security (7.16% GOI 2023 issued on 20May-2013) on Oct 21, 2013 for 21 days
(repayment on Nov 11, 2013) for a Face Value of
Securities
When the chance of penalties is high for failure to deliver the security.
11
ARTICLE
`500million at 8.36%. The underlying bond is
trading at 8.80% for settlement on Oct 21, 2013.

The underlying security has a Clean Price of
`89.5197 (using 30/360E criteria) and has 151
days of accrued interest amounting to 3.0032

giving us a Dirty Price of `92.5229. The
consideration in the First Leg (Ready Leg)
becomes `462, 614,725. The repo interest will be
charged on the above funds at 8.36% for 21 days.
The same works out to `2, 225,113 using Act/365
criteria. So the Borrower (Bank A) will pay to
CCIL
Bank B `464, 839,838 on Nov 11, 2013 and take

back the security. But in a buy/sell-back repo, the
transaction is divided into two separate deals - in
the second leg the repayment becomes the
consideration and the Bank B must account the
same in terms of a Clean Price and Accrued
Interest. This is done to have proper accounting
in the books as Clean Price is a part of the
Balance sheet (Asset side when it enters the book)
while accrued interest is absorbed in the Profit
and Loss Account. The repayment amount in the
second leg (forward leg) can be converted into a
12
Dirty Price of `92.9680 out of which 3.4010 is the

accrued interest for 171 days as on 11-Nov-2013.
The implied Clean Price will be the difference
between Dirty price and Accrued Interest. The
same will re-enter the books of Bank A at
`89.5670 resulting in a small capital gain as it left
the Book at `89.5197. For Bank B, it can be a

capital loss and can be leveraged for tax purposes.
By doing the repo deal at the agreed rates, the
traders have also given their expectation about

the future yield of the bond. The forward price of
`89.5670 implies a yield of 8.80% for the security
on 11-Nov-2013. This implies that traders do not

expect much change to the yield curve in next
three weeks - expectation of a flat yield structure
for next 3 weeks.
An important distinction between repo lending
and a collateralized loan is that legal ownership
of the security is transferred to the lender of
funds which provides the repo lender with better
control over the collateral in case the
counterparty defaults. At times, repo transaction
also provides for collateral substitution rights to
the lender of security. Right of substitution may
make the repo transaction restrictive as the
borrower of the security has to maintain the
collateral inventory or should be in apposition
to borrow the same through another repo
transaction if the lender of the security demands
the same.
Indian repo market is predominantly an
overnight repo market - dominated by banks and
institutions. The market uses sovereign securities
as collateral. The repo market in India was a pure
OTC market where both lenders and borrowers
to talk to each other to finalize a deal. The
anonymous online repo dealing system
introduced by Clearing Corporation of India
Ltd. (CCIL) helped the market to go for a radical
change - moving from OTC market to an
The repo interest is for 21 days while bond interest accrued is for 20 days - the one day shortfall is because
of the different day count convention used for repo market (ACT/365) and bond market (30/360E).
CCIL introduced CROMS platform in Jan'09 for allowing institutions to deal in repo using both Basket
and Special windows.
ARTICLE
The Indian Repo market has three different

segments - RBI Repo (daily LAF at a fixed rate),
Market repo among banks and institutions at
market determined rates and Collateralised
Borrowing and lending Obligations (CBLO) - a
repo variant with the combined structure of heldin-custody and tripartite repo in which the
contract can be traded, unlike other standard
repo in which the security under repo can be
traded but the contract cannot be unwound till
the end of the contract. CBLO market has been
which are immobilized at the service provider6.

CCIL allows entities to borrow from the market
against Government securities after applying the
applicable haircuts to manage risk. Both Market
repo and CBLO trades are guaranteed by CCIL
which plays the role of a CCP7.
2. Central Bank Repo
Central Bank Repo is one of the oldest
instruments of monetary policy. Federal Reserve
started using a type of repo in 1920s, while Bank
of Canada used repos since 1953. Bank of
England started using repos with government
securities in 1997, while Japan and Switzerland
started using repos in 1997 and 1998,
respectively. Canada, Italy and Sweden use the
buy/sell-backs, while Japan uses securities
borrowing with cash collateral. The Netherlands
uses a special loans system in which loans are
collateralised via pledge on a pool of collateral
(general). Most of the countries use the forms of
repo keeping in mind the legal and institutional
framework that prevails in each country. The use
of repos as a monetary policy instrument is more
justified from the fact that repos are well suited to
influence the interest rate level through two of
the main channels used to implement monetary
policy - for moderating or controlling liquidity
CCIL offers CBLO trading platform for the market participants to trade. The system allows non-bank
entities like Non-Banking Finance Companies, Large Corporates investing in Government securities, Large
Oil Companies, etc. having stocks of Government bonds issues to support oil pool deficit.
7
The trading activity in repo market indicates

leverage positions taken by traders. A relatively
higher volume in Special window would indicate
traders are borrowing specific securities for their
leveraged positions like delivery against short
sale position or delivery against a forward
contract like Interest Rate Futures. Buyers of the
securities (having long positions with an interest
rate view) in the outright market may also use the
security in repo window to lend the same to other
users. If the trading activity in the Basket window
is higher, it would indicate traders are using the
same more as a collateral to lend funds or some
traders may be using the same for regulatory
purpose like maintaining SLR.
the most liquid form of the short term market

with more than 60% of the short term market
share. CBLO provides an anonymous order
matching system for trading funds against the
collaterals in the form of Government securities
CCIL
anonymous order driven market resulting in true

price discovery of the repo yield. It provides for
both General (Basket) and Special repo dealing.
Large part of the repo market moved to this
platform, while a very small part still remains
outside this platform.
Central-Counter Party guarantees settlement of all trades in Market repo and CBLO.
13
in money markets and an effective mechanism

for signaling to markets the desired level of
interest rates. A central bank repo indicates the
rate at which the Central Bank is willing to lend
money against acceptable collaterals to banks - to
infuse liquidity to the system where there is
shortage of funds. Most central banks follow an
interest rate corridor to set a rate below the repo
rate at which the Central Bank is willing to
absorb excess liquidity in the banking system if
the need arises. So the repo and reverse repo rates
indicate both support and resistance level for
money market funds. The market logically has to
operate within the interest rate corridor as a
trader having excess cash would demand the
minimum rate from a borrower of funds which
she can get from the Central Bank by pledging
excess cash with her. If a bank has faced shortage
of liquidity, then it can approach the Central
bank with acceptable collaterals to pledge and
borrow funds at the repo rate. By changing the
repo rate, the central banks indicate the interest
rate direction. A shift in monetary policy can be
signaled by adjusting the interest rate corridor.
Central Banks use repo to infuse liquidity to the
system. During the financial crisis, central banks
around the world infused unprecedented level of
liquidity to the financial system by lowering the
quality of acceptable collaterals thereby
facilitating availability of credit to the economy
from the banking system. McAndrews et al.
(2008), Ashcraft et al. (2009), and Christensen et
al. (2009) find that the liquidity measures
adopted by the Federal Reserve were effective
during the 2007-08 financial crisis. When
liquidity dries up, central banks have two unique
abilities: to provide liquidity in sufficient

amounts in response to abnormal shocks
(Bhattacharya and Gale, 1987; Acharya et al.
2008) and to diversify risk across many illiquid
banks (Flannery, 1996; Rochet and Vives, 2004).
RBI uses a system called Liquidity Adjustment
Facility (LAF) for moderating liquidity situation
in the banking system. It has specific timing
windows (typically at the beginning of market
hours) within which banks are required to access
funds or park funds in which RBI is the counterparty. The rates at which such transactions take
place are fixed and are changed by RBI from time
to time depending upon its monetary policy
considerations. Currently, it uses repo rate for
lending money to Banks and Primary Dealers
against acceptable Government securities.
However, it currently restricts the said borrowing
with a cap of 0.5% of the Net Demand and Time
Liabilities (NDTL) of a Bank. In case the Bank
still requires more funds, it can access another
window called Marginal Standing Facility (MSF)
to borrow funds upto 1% of its NDTL. Recently
RBI introduced longer term repos under 7-day
and 14-day windows on reporting Fridays8 with a
market determined interest rate using auction
mechanism. RBI also conducts the LAF fixed rate
repo auction for a second time in the afternoon
on reporting Fridays to ensure that the liquidity
is fully absorbed though currently it opens a
second LAF window to allow banks to park
surplus funds with RBI. The RBI has also made
changes to the MSF window's timing making it
the last time slot (7PM - 7.30PM) in the banking
channel for borrowing funds from RBI.
CCIL
ARTICLE
Alternate Fridays are reporting Fridays for Banks in which their NDTL is calculated for Regulatory
maintenance of Cash Reserve Ratio and Statutory Liquidity Ratio.
14
ARTICLE
Ledger (SGL)9 account of the Banks.
In Indian market, RBI support to the banking

system through daily LAF has been a major
liquidity management tool since its inception.
However, the substantial liquidity injected10 to
the banking system in a very short span of time
soon after the financial crisis resulted in interest
rates moving to their lowest levels in short term
money market and Treasury bills market. Since
June'10, RBI has been continuously supporting
the market with infusion of liquidity through
daily LAF.
Table -1: RBI Injection of Liquidity to Banking System
(Apr07 to Nov13)
Net RBI Support (` Crore)
Parameters
Mean
7871
Standard Error
5890
Median
-1696
Standard Deviation
64252
Minimum
-130978
Maximum
146789
Months
119
Historically, the current stretch has been the

longest period in which banks have been
continuously borrowing funds from RBI (almost
42 months with a daily average borrowing of
more than `75000crores which is almost 1% of
the current NDTL of the banking system).
However, at times the liquidity support has been
very high and touched about 2% of the NDTL of
the banking system.
Banks have to maintain SGL account with RBI for keeping their Securities balances.
RBI injected about `500,000Crores (1Crore is 10million) in a short span of time to fend off the impact of
financial crisis on the Indian financial system.
The securities used in the daily RBI LAF repo by a

Bank (while borrowing money from RBI) can be
considered under SLR requirement, while the
reverse repo deals entered with the RBI by a Bank
does not provide SLR benefit as RBI does not use
a pure Buy/Sell-Back mechanism but credits the
securities to a kind of pool account and not to
the account of the individual Subsidiary General
3. Market Activity
CCIL
Repos are useful for monetary policy because

they have a number of features: (a) they carry a
low credit risk as they are collateralized; (b) they
are relatively flexible and their features can be
tailored by the central bank according to
liquidity conditions; (c) repos do not affect
securities prices or yield curve in general; and (d)
Central banks can reach out to a broader range of
institutions in case of need (viz. extending
facility to select non-bank entities at the time
financial crisis). Repo market also gives the credit
spread to understand the stress in the market.
The spread between clean Call rate and Market
Repo Rate gives the perceived credit risk in the
system. At the time of stress, the spread widens
and at the time of ample liquidity, the spread
shrinks.
10
15
ARTICLE
Daily liquidity Support from RBI (` Crore)
May-13
Apr-09
Oct-12
-150000
Mar-12
3.00
Aug-11
-100000
Jan-11
4.00
Jun-10
-50000
Nov-09
5.00
Sep-08
Feb-08
6.00
Jul-07
50000
Dec-06
7.00
May-06
100000
Oct-05
8.00
Mar-05
150000
Aug-04
9.00
Jan-04
Policy Repo/Reverse Repo Rate (%)
Chart - 1: RBI Policy Rate and Net Systemic Liquidity Support
Month/Year
LAF
Net support to the banking system has a positive

correlation with the policy rates - with Repo rate
about 68% co-movement and with reverse repo
about 78% co-movement. In recent times, Banks
have been continuously borrowing funds from
the RBI. In 2009, the banks parked large sum of
funds with the RBI's reverse repo window due to
availability of excess liquidity in the system (as a
fallout of financial crisis). Daily money market
CCIL
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
11
16
RP
REVRP
activity has not seen substantial variation during

2004-2013 and remained at about 1% of NDTL.
Daily RBI LAF window witnessed wide variations
in liquidity as banks have to manage systemic
liquidity with the help of this window.
Market has been using the RBI LAF system as a
most important support system to ensure proper
liquidity management. However, fixed policy
rate repos provide direction of the interest rate in
Table -2: Repo Rate, Spread, LAF Support and Market Activity (Daily Average)
Repo Rate Rev. Repo Rate Call Rate Spread Net LAF Support Money Market activity11
6.25
4.54
4.60
0.39
-35600
15195
6.05
4.96
5.10
0.19
-19858
22969
6.78
5.74
6.42
0.37
-21748
35794
7.67
6.00
6.65
1.00
-6334
48917
8.01
5.94
7.74
0.60
5146
56466
4.92
3.42
3.47
0.60
-94805
81625
5.47
4.15
4.90
0.59
9063
69913
7.48
6.48
7.55
1.01
64524
67252
8.14
7.14
8.30
1.29
94044
70678
7.50
6.50
8.16
1.22
88788
97167
Total daily average trading activity in Call, Repo and CBLO markets.
ARTICLE
the market. The market uses the said information

to firm up other interest rates in the system like
inter-bank call, market repo and CBLO rates.
These three forms of short term market in India
form the backbone of the money market system
and these rates typically hover around the policy
rates - at the time of excess liquidity in the system,
the rates are around the reverse repo rate while at
the time of shortage, the same hovers around
repo rate. The introduction of CBLO changed
the structure of the money market in India.
Before 2004, the market heavily depended on the
uncollateralized overnight inter-bank call
market for funding. RBI made some policy
changes and restricted the exposure to
uncollateralized market by putting exposure
controls as high dependence on uncollateralized
call market envisaged systemic risk to the entire
system. In Jan'04, uncollateralized call market
accounted for 62% of the market share while

market repo accounted for 35% and CBLO
accounted for less than 3% of the market share.
Non-bank entities12 (excluding Primary Dealers)
were phased out from the uncollateralized call
market and were advised to move to
collateralized markets like Repo and CBLO. As
of October'13, the CBLO accounted for about
59% of the market while market repo accounted
for 28% market share and uncollateralized call
market accounted for 14% of the market share.
RBI has been successful in moving larger
volumes in the short term market to the
collateralized segment from the clean call
market. This has helped in removing systemic
risk as well as created demand for securities as
traders have to hold securities against which they
can borrow funds from counter-parties.
Chart - 2: Market Share in Money Market
70%
61%
50%
50%
61%
55%
53%
59%
44%
40%
32%
30%
20%
16%
10%
0%
2005
2006
2007
2008 2009
Year
2010
Call
Repo
CBLO
2011
2012
2013
CCIL
2004
Market Share
60%
65%
12
Non-bank entities like Mutual Funds, Non-Banking Finance Companies and Insurance Companies were typically
lenders in the call market and were phased out from the call market in a calibrated manner.
17
ARTICLE
Money market consolidated trading activity

indicates the level of liquidity absorbed by the
system. It has a very strong correlation with the
systemic liquidity support from RBI. The
correlation between absolute of net RBI LAF
activity and consolidated money market volume
has been found to be about 53% (monthly data
from Jan'04 to Nov'13), while the correlation
between the spread between Call and market repo
rates and consolidated money market volume is
about 31% (monthly data Jan'04 to Nov'13)
while with daily LAF, the correlation was 44%.
The interest Rate Corridor as measured by the

difference between policy Repo and Reverse
Repo rate had expectedly negative correlation
with LAF (-35%) and money market activity level
(-22%). The short term market predominantly
remains a pure overnight market and hence is
exposed to high rollover risk. It will be
interesting to see how far the recent introduction
of term repos of 7 and 14-day on reporting
Fridays is going to help in developing the term
market in India.
1.40
120000
1.20
100000
1.00
80000
0.80
60000
0.60
40000
0.40
20000
0.20
0.00
Monthly Money Market Trade Value

( ` Crore)
Spread between Call and Repo (%)
Chart - 3: Spread and Money Market Activity
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year
CCIL
MM
CV
CV
RV
CBV
Spread
MM
LAF
Abs (LAF)
18
1
0.85
<.0001
0.787
<.0001
0.68
<.0001
-0.05
0.60
0.10
0.33
-0.20
0.04
Spread
Table - 3: Pearson Correlation Coefficients

Prob > |r| under H0: Rho=0
RV
CBV
Spread
MM
0.85
0.79
0.68
-0.05
<.0001
<.0001
<.0001
0.604
1
0.74
0.55
-0.06
<.0001
<.0001
0.564
0.743
1
0.50
0.22
<.0001
<.0001
0.022
0.55
0.50
1
0.31
<.0001
<.0001
0.001
-0.06
0.22
0.31
1
0.56
0.02
0.001
-0.15
-0.02
0.44
0.26
0.13
0.88
<.0001
0.004
-0.24
-0.07
0.36
0.53
0.01
0.50
<.0001
<.0001
LAF
0.10
0.33
-0.15
0.125
-0.02
0.878
0.44
<.0001
0.26
0.004
1
0.25
0.01
Abs
-0.20
0.041
-0.24
0.014
-0.07
0.503
0.36
<.0001
0.53
<.0001
0.25
0.01
1
ARTICLE
At the time of severe liquidity crunch, the rates

move to unprecedented high levels. The volatility
measured by the difference between daily high
and low call rates and the spread between daily
call and market repo rate have a correlation 0.68.
different permissible Government securities like

Floating Rate Bonds, State Development Loans,
Special securities like Oil Bonds issued by
Government to fund oil pool deficits (subsidy
payments), and Treasury Bills, traders have been
Table - 4: Descriptive Statistics of Volatility, Spread and market Activity

Variable
Minimum
Maximum
Mean
Std Dev
Range
MM
119
10323
116450
55987
26097
106128
LAF
119
-130978
146789
7871
64252
277766
Abs
119
13
146789
51160
39387
146775
Spread
119
0.04
5.14
0.72
0.64
5.10
CV
106
0.76
13.92
2.10
1.48
13.16
RV
106
0.30
7.45
1.15
0.81
7.14
CBV
106
0.28
5.43
1.35
0.89
5.15
MM - Daily Money market activity; Abs - Daily average LAF support (absolute); CV, RV and CBV - Volatility in Call Repo and
CBLO markets
4. Securities Used in Repo Transactions
using pure Government securities, though in

recent times, the Treasury Bills have been
contributing to a sizeable share in total repo
deals. This increase in market share for Treasury
Bills is mainly due to high value of Treasury Bills
Repo transactions in Indian repo market use

mostly Government securities though corporate
bonds can also be used for such transactions.
Very few transactions take place using corporate
bonds. Though market has a choice of using
issued since last three years13.
Table - 5: Descriptive Statistics of Maturity of Securities used in Repo Deals

Value
Share
Cumulative
4727
1190017
5.66%
5.66%
12103
3093265
14.72%
20.39%
13475
3071121
14.62%
35.00%
7213
1622740
7.72%
42.73%
8462
1970000
9.38%
52.10%
9192
1728779
8.23%
60.33%
6396
802253.8
3.82%
64.15%
7915
1263331
6.01%
70.16%
6195
921031.5
4.38%
74.55%
9545
1062864
5.06%
79.60%
10
15383
1812031
8.62%
88.23%
CCIL
<1
Deals
MATURITY
13
Government has issued high value of short term Treasury Bills and Cash Management Bills in the aftermath of
Financial crisis. The notified amounts for Treasury Bills have increased substantially in recent times.
19
ARTICLE
Traders use the repo market in India more for

liquidity management and less for managing
portfolio of securities as can be seen from the
portfolio of underlying securities used in the
repo transactions. The market uses very short

term securities and securities upto 2 years
account for 35% of total repo deals in terms of
value.
Table - 6: Descriptive Statistics of Securities used in Repo Transactions

Year 2007
Year
Securities
FRB
GS
SDL
SPL
TB
48
44
18
101
Value
1841
2234434
26481
253690
240102
Share
0.1%
81.1%
1.0%
9.2%
8.7%
Deals
55
13633
797
2945
2194
50
50
25
106
2863365
56792
635302
346845
73.4%
1.5%
16.3%
8.9%
14336
1022
5710
2005
Year 2008
Securities
Value
Share
Deals
Year 2009
Securities
58
75
22
120
Value
466
4936353
27613
327974
905559
Share
0.01%
79.6%
0.4%
5.3%
14.6%
Deals
21308
918
3331
5277
Year 2010
Securities
61
62
15
133
Value
16728
3316671
16500
190150
847600
Share
0.38%
75.6%
0.4%
4.3%
19.3%
Deals
215
17931
703
2091
5864
Year 2011
Securities
62
67
151
Value
55503
2202319
19475
206255
1468191
Share
1.40%
55.7%
0.5%
5.2%
37.2%
Deals
324
16383
571
1900
9619
Year 2012
Securities
64
92
148
Value
103000
2256932
70177
78166
2101344
Share
2.2%
49.0%
1.5%
1.7%
45.6%
Deals
825
21145
1054
635
15087
139
Year 2013
CCIL
Securities
20
62
66
Value
1861
3200473
24508
1068
2831606
Share
0.0%
52.8%
0.4%
0.0%
46.7%
Deals
23
22618
543
22
16007
ARTICLE
The most liquid securities in the underlying

outright market are typically benchmark
securities like 10-year and 5-years bonds. The
market share of these securities in repo deals is
about 8% each vis--vis about 40% for 10-year
bonds in outright underlying market. From the
behavior of the repo market transactions, it can
be implied that the market uses the repo deals to
manage liquidity and not for leveraging
securities portfolio holding. This may be due to
the fact that the lending side of the market in
repo is dominated by Insurance Companies and
and spread between collateralized and

uncollateralized rates widens when the stress goes
up in the market. However, empirically,
volatility in Call market is relatively higher than
the repo and CBLO markets. Call market is
preferred by borrowers only when the avenues to
access funds using collaterals are exhausted and
can be said as a residual borrowing by Banks and
Primary Dealers. Lenders would charge a premia
when lending it in Call as they perceive the
market as relatively riskier vis--vis other
collateralized markets.
4.1
100000
3.6
90000
3.1
80000
70000
2.6
60000
2.1
50000
1.6
40000
1.1
30000
0.6
20000
0.1
2004
2005
2006
2007
2008
2009
2010
2011
2012
10000
2013
Daily Money Market / LAF Activity

(` Crore)
Spread, Volatility (%)
Chart 4: Spread and Volatility vis-a-vis Market Activity
Year
CV
Mutual funds who typically do not have trading

interest in securities and accept the securities as
collaterals against funds lent. As such the market
does not witness significant short selling nor is
there a Interest Rate Futures (IRF) market in
India which requires borrowing of securities for
delivery against obligations.
5. Determinants of Spread
Spread and volatility are important factors in
understanding the stress in the market. The tight
liquidity implies higher credit risk in the system
RV
CBV
Spread
The daily LAF activity gives the systemic

liquidity shortage or excess as Banks and Primary
Dealers would use this window to manage their
balance sheet. If LAF support is not sufficient
due to quantitative limits or if the LAF policy
rate is lower than in other comparable markets
like CBLO and market repo, then borrowers
having securities would like to use these markets
to borrow. Theoretically, the spread should be
dependent on the amount of LAF support,
money market activity, lagged spread (to find it
there is any autoregressive structure) because past
LAF(Abs)
CCIL
MM
21
ARTICLE
spreads indicate the continuity of stress

condition. Further, the interest rate corridor has
great significance to understand the monetary
policy stance of the central bank. In a channel
system like LAF, RBI offers two standing
facilities: a lending facility where it is ready to
supply money overnight at a given lending rate
against collateral and a deposit facility where
banks can make overnight deposits to earn a
deposit rate. The interest-rate corridor is chosen
from central bank is relatively costlier than

placing money with the central bank. Hence, the
interest rate corridor should also give some
indication of the spread. The typical corridor
used by RBI in normal circumstance has been
100bps. Hence, if the same goes beyond 100bps,
we assume the tightening of the policy. We have
used the corridor as a dummy variable in the
regression model. The linear regression model is
likely to provide the determinants of the spread.
Table - 7: General Linear Model Results (Jan04 - Nov13 excluding Mar-Apr07)

Parameter
Estimate
Intercept
Standard Error
0.1213
0.0816
1.49
0.1401
1.91E-06
5.91E-07
3.23
0.0016
MM
3.71E-06
1.22E-06
3.04
0.0029
LS
0.5078
0.0939
5.41
<.0001
LS1
-0.0781
0.0659
-1.18
0.2388
LS2
0.0715
0.0515
1.39
0.1677
COR1
-0.0386
0.0688
-0.56
0.5756
903
0.2894
AIC
48.2832
Durbin h14
-0.4518(0.3257)
* Indicates significant at 99%
to keep the overnight interest rate in the money

market close to the target rate. In a pure channel
system, a change in policy is implemented by
simply changing the corridor without any open
market operations. Central banks typically react
to changing economic conditions by increasing
or decreasing their interest-rate corridor. The
money market rates should be in the middle of
the corridor. Widening of the corridor implies
tighter monetary policy stance as borrowing
14
The estimated model indicates lag spread has no

significant influence on the current spread.
However, the spread is influenced by the LAF
support and total money market activity and the
relationships are positive. The original dataset
contained two months of data which were found
to be extreme outliers due to some extraordinary
liquidity measures15 introduced in March'07. The
effect of the same continued till April'0716 and
the spread for March'07 was more than 5% while
Since lagged values are included in the equation, DW stat is not strictly valid. Durbin h is reported.
Starting March 5, 2007, daily reverse repo absorptions was limited to a maximum of `3,000crore each day comprising
`2,000crore in the First LAF and `1,000crore in the Second LAF. This was announced at a time when Banks were parking
about `30000crores in RBI LAF window (on March 1, 2007).
15
CCIL
Pr > |t|
LAF
R-Square
0.6484
16
22
t Value
The restriction on reverse repo quantum was withdrawn in July'07.
ARTICLE
distributed (Kolmogorov-Smirnov D stat of

0.079 (p value >0.08) indicating a better fit of the
model.
for April, the same was more than 2%. We

publish the above results after dropping these
two data outlier points. The Durbin-h stat clearly
shows that h statistic is -0.4518 which is not
Chart 5: Distribution of Residual

35
N
30
114
D 0.080
Normal Pr >
Percent
25
20
15
10
5
0
-0.8
-0.6
-0.4
-0.2
0.2
0.4
0.6
0.8
1.0
1.2
1.4
CCIL
statistically significant
Chart-6: Kernel Density for Spread and Residual of Regression Model
with a p-value of 0.3257,
indicating no
autocorrelation. Interest
Rate corridor was not
found to be statistically
significant. Hence we
dropped the same and the
results did not change
substantially (R-Sq changed
from 0.6484 to 0.6474). The
results show that LAF
activity and consolidated
money market activity
along with one period
lagged Spread has
significant influence on the
spread. The residual of the
regression is normally
Residual
23
ARTICLE
Determinants of Spread when Central Bank

Absorbs Liquidity vs. Injecting Liquidity
Central bank liquidity support structure is the
driver of systemic liquidity while the interbank
market is the main market for trading in
liquidity at appropriate cost. Central bank
liquidity support (both infusion and injection)
can be viewed as the market for primary liquidity
whereas the interbank market can be considered
as the secondary market for liquidity, where the
liquidity obtained in the primary market is
CCIL
reallocated with appropriate risk cover17. The

study tried to understand if the spread behavior
is different in different scenarios - excess
secondary market liquidity in which the Central
Bank absorbs liquidity and shortage of
secondary market liquidity in which the Central
Bank infuses liquidity to the system. We divided
the dataset (Jan'04-Nov'13 excluding Mar-Apr'07
for specific reason already explained earlier in
this paper) into two panels of datasets Absorption and Injection.
24
Surplus liquidity may have no material influence

on policy effectiveness, as has been the case in
Hungary and South Africa (De Bondt (2002)).
With surplus liquidity, monetary policy
transmission mechanism can break down or
become weakened. If the banks have surplus
funds, the commercial bank will have discretion
17
as to whether they lend their surplus to the

central bank at the policy rate or create more
credit by lowering credit standard if the policy
rate is not attractive and the banks have the risk
appetite. In case of surplus, the central bank's
ability to transmit its preferred interest rate
structure (yield curve direction) into the market
gets weakened. The central bank being the
monopoly supplier of funds in case of a shortage
situation (banker of the last resort for
commercial banking system), it works as a price
setter - thereby indicating the marginal price of
the banks' credit to commercial sector. If the
shortage is a continuing feature of the market,
the central bank becomes a net creditor of the
banking system and the effectiveness of the
monetary policy is likely to be stronger. However,
the level of acceptable shortage for effectiveness
of the monetary policy is a debate in itself.
In order to understand if the determinants of the
spread are different in different market situation,
we divided the data into two categories absorption and injection of liquidity by RBI
using the Linear Regression model in Eq 1. The
result showed that in case of Injection of
liquidity, lagged spread is significant along with
LAF activity but in case of absorption, only LAF
activity is significant. However, the results for
INJECT shows AR structure.
A bank may obtain Central Bank liquidity by using its excess holding of approved securities and use the
same in the inter-bank Call market to lend at higher rate to a bank which does not have required securities to
obtain funding from Central Bank.
ARTICLE
Table - 8: General Linear Model Results (Jan04 - Nov13 excluding Mar-Apr07)

Parameter Estimates - ABSORB
Estimate
Intercept
0.0285
Error
t Value
0.0515
0.55
Parameter Estimates -INJECT

Approx
Pr > |t|
0.583
Estimate
Standard
Error
0.3082
0.1462
t Value
Approx
Pr > |t|
2.11
0.0399
LAF
-0.000003
0.000001
-3.79
0.0004
0.000004
0.000002
2.58
0.0128
MM
0.000002
0.000001
1.58
0.1202
0.000000
0.000003
-0.06
0.949
LS
0.1829
0.1116
1.64
0.1075
0.4394
0.1336
3.29
0.0018
LS1
0.1022
0.1088
0.94
0.3518
-0.0968
0.0818
-1.18
0.2425
LS2
0.0296
0.0488
0.61
0.5468
0.1294
0.1324
0.98
0.3331
R-Sq
RMSE
Durbin h
R-Sq
RMSE
Durbin h
0.59
0.16983
0.56(0.29)
0.55
0.3316
-30.24(.01)
Further, to understand if the spread behaves in a

different manner when the system has excess
liquidity vis--vis shortage of liquidity, we used a
Regime Switching model using Goldfeld and
Quandt's D-method for switching regression.
Assuming that observations exist on some
exogenous variables, z1i, z2i, .., zpi, where z
determines whether the i th observation is
generated from one equation or the other. The
equations are given as follows:
where pj are unknown coefficients to be
The parameters to estimate are now the k b1's, the

k b2's,s1 , s2 , p p's, and the s introduced in the
2
d(zi) equation. The can be considered as given a

priori, or it can be estimated, in which case, the
estimated magnitude provides an estimate of the
success in discriminating between the two
regimes (Goldfeld and Quandt 1976). Given the
preceding equations, the model can be written as:
Where W = (1 - D) * U1 + D*U2, and W is a vector

of unobservable and heteroscedastic error terms.
The covariance matrix of W is denoted by W,
where W = (1 - D)2 * s12 + D2 * s22. The maximum
likelihood parameter estimates maximize the
following log-likelihood function.
CCIL
estimated. Define d (zi) as a continuous

approximation to a step function. Replacing the
unit step function with a continuous
approximation by using the cumulative normal
integral enables a more practical method that
produces consistent estimates.
consisting of d(zi)
Variable
Standard
D is the n dimensional diagonal matrix
25
ARTICLE
The parameter estimates and ANOVA table from

this regression are shown below.
significant difference in the AR term on the

Spreads.
Table 9 : Nonlinear Likelihood Parameter Estimates for the Regime Switching Model
Parameters for Two Regimes
Estimate
Approx Std Err
Approx
t Value
Pr > |t|
sig1
0.299759
0.0294
10.2
<.0001
sig2
0.301833
0.0267
11.31
<.0001
intercept1
0.176698
0.216
0.82
0.4151
LS
0.636381
0.0997
6.38
<.0001
COR
-0.03858
0.1
-0.39
0.7004
MM
2.43E-06
1.88E-06
1.29
0.1994
intercept2
-0.06541
0.1596
-0.41
0.6828
LS
0.732519
0.1028
7.12
<.0001
COR
0.064435
0.1007
0.64
0.5239
MM
2.96E-06
1.75E-06
1.69
0.0943
445.2923
Nonlinear Likelihood Summary of Residual Errors

Equation
DF Model
spread
11
DF Error
105
SSE
MSE
10.5031
R-Square
0.5905
Adj R-Sq
0.5515
Repo is used by market participants to obtain

funds or to obtain securities depending on the
need. This latter feature of the instrument is
valuable to traders as it helps them to meet their
contractual obligations, such as to make delivery
for a short sale or against a futures contract.
Repos are also used for leverage, to fund long
Table - 10: Test Results from Regime Switching Model (test of Coefficients)
Test
Type
Statistic
Pr > ChiSq
L.M.
0.8
0.3711
int1 = int2
Test1
L.M.
18372*
<.0001
b11 = b21 18
Test2
L.M.
0.52
0.4702
b13 = b23
Test3
L.M.
3.14E+22*
<.0001
b14 = b24 19
Test4
L.M.
0.9584
sig1 = sig2
CCIL
19
Label
Test0
* indicates significant at 1%
18
26
0.3163
Conclusion
We have included five TEST statements to test the

hypothesis that the parameters are the same in
both regimes. The test results shown suggest that
the variance Spreads, Sig1 and Sig2, are not
significantly different in the two regimes. This
clearly tells that the monetary policy is stable in
both the regimes and the effectiveness of
monetary policy in both the regimes are not
statistically different. The tests also show a
Root MSE
0.1
Significant at 1% for Coefficient of Lag of Spread (AR term) in both regimes.

Significant at 1% for Coefficients of Money Market Volume in both regimes
ARTICLE
Liquidity stress in the market has an impact on

the short term interest rate. The entities who do
not maintain sufficient amount of Government
securities in their portfolio may have to borrow
funds in the inter-bank call market at higher
interest rate. The spread between Call and Repo
rate widens when there is liquidity stress in the
market. The current study has explored the
determinant of the spread. It found that LAF
window activity as well as total money market
activity has an impact on the Spread. In order to
understand if the spread behaves in a different
manner when the system has excess liquidity vis-vis shortage of liquidity, we used a Regime
Switching model using Goldfeld and Quandt's
D-method for switching regression. The tests
References
Ashcraft, A., McAndrews J. and D. Skeie (2009).
Precautionary Reserves and the Interbank
Market. Federal Reserve Bank of New York Staff
Reports, 370.
Ashcraft, A.B., Bech, M.L., Frame W.S., 2008. The
Federal Home Loan Bank System: The Lender of
Nextto-Last Resort? Federal Reserve Bank of New
York, Staff Report no. 357.
Acharya V.V., Skeie, D., 2011. A Model of
Liquidity Hoarding and Term Premia in InterBank Markets, CEPR Discussion Paper No.
8705.
Acharya, V., Gale, D., and Yorulmazer T., 2009.
Rollover Risk and Market Freezes", New York
University working paper,
http://www.nyu.edu/econ/user/galed/papers/p
aper09-08-31.pdf
Acharya, V.V., Gromb, D., and Yorulmazer, T.,
2008. Imperfect Competition in the Interbank
Market for Liquidity as a Rationale for Central
Banking. Working Paper, London Business
School.
A c h a r y a , V. V. , M e r ro u c h e , O . , 2 0 1 0 .
Precautionary Hoarding of Liquidity and InterBank Markets: Evidence from the Sub-prime
Crisis, NBER Working Paper No. 16395.
Affinito, M., 2012. Do interbank customer
relationships exist? And how did they function
in the crisis? Learning from Italy. Journal of
Banking and Finance, 36.
In India, RBI has been using Repo as an

instrument for monetary policy by
institutionalizing daily Liquidity Adjustment
Facility which allows banks and Primary Dealers
to manage their liquidity needs. Market
participants also trade in Repo using
Government securities. The Repo market in
India has been growing steadily and both Repo
and CBLO account for a large part of the total
short-term money market transactions.
found that the monetary policy is stable in both

the regimes and the effectiveness of monetary
policy in both the regimes are not statistically
different.
CCIL
positions in securities and to fund short

positions for hedging interest rate risks. Repo
markets have strong linkages with securities and
derivatives markets. Repos are used by central
banks both as a monetary policy instrument and
as a source of information on market
expectations. Repos carry low credit risk as these
are fully collateralized transactions and are used
by central banks for liquidity management.
Central banks also use Repo as an effective
mechanism for signaling the stance of monetary
policy.
27
ARTICLE
BIS (1999), Implications of repo market for

central banks, CGFS Publications No. 10.
Bhattacharya, Sudipto, and Douglas Gale. (1987)
Preference Shocks, Liquidity and Central Bank
Policy. In New Approaches to Monetary
Economics, edited by William A. Barnett and
Kenneth J. Singleton, pp. 69-88. New York:
Cambridge University Press.
Christensen J.H.E., Lopez J.A., Rudebusch G.D..
2009. Do Central Bank Liquidity Facilities Affect
Interbank Lending Rates? Federal Reserve Bank
of San Francisco, Working paper series 13.
CCIL
Flannery, M.J., 1996. Financial crises, payment

system problems, and discount window lending.
Journal of Money, Credit, and Banking 28, 804824.
28
McAndrews, J., A. Sarkar and Z. Wang (2008)

.The Effect of the Term Auction Facility on the
London Inter-Bank Offered Rate, .Staff Reports
335, Federal Reserve Bank of New York.
S.M. Goldfeld & R.E. Quandt (1973), Estimation
of Structural Shifts by Switching Regressions,
Econometric Research Program, Research
Memorandum 147
S.M. Goldfeld & R.E. Quandt (1965), Some Tests
for Homoskedasticity. Journal of the American
Statistical Association 60, 539-547
Rochet J and Vives X (2004) Coordination
failures and the lender of last resort: Was Bagehot
right after all? Journal of the European
Economic Association December 2004
2(6):1116-1147
INFOCUS
Report on Trend and Progress of Banking in India - 2012-13
Policy Responses
Move towards risk-based supervision aimed at
enhancing the efficacy of the supervisory review
process: The Reserve Bank is entrusted with the
responsibility of supervising the Indian banking
system under various provisions of the Banking
Regulation Act, 1949 and the RBI Act, 1934. While
the banking landscape has witnessed considerable
changes over the last two decades, supervisory
resources and processes based on the CAMELS
framework within the Reserve Bank have remained
more or less the same. Post the global financial
crisis, there has been a shift towards RBS away from
the erstwhile CAMELS approach. CAMELS is
essentially a scorecard based approach which is
more of a backward looking methodology and
Policy initiatives for improved cross border

supervision and cooperation: The cross border
operations of Indian banks are rapidly increasing.
In view of this, the formalisation of the
relationship between Home and Host
supervisors, by way of a Memorandum of
Understanding (MoU), has become an important
channel for the Reserve Bank. The Reserve Bank
has initiated the process of signing MoUs with
overseas regulators on supervisory cooperation and
exchange of information. The Reserve Bank has
executed MoUs with 16 overseas supervisors. In
addition, proposals with respect to 28 other
overseas supervisors are in various stages of
arriving at a mutually agreeable format of MoUs.
Steps initiated to enhance oversight of financial
conglomerates: An institutional structure for the
oversight and monitoring of Financial
Conglomerates has been set up in the form of an
Inter-Regulatory Forum (IRF) modeled around the
lead regulator principle. IRF has identified 12
FCs for monitoring, each having a significant
presence in two or more market segments from
amongst banking, insurance, capital market,
Global growth continued to remain sluggish in

2012-13. Adverse international economic
developments combined with the loss of growth
momentum in the domestic economy posed
challenges to the banking sector in India during
2012-13. There was a rise in asset impairment
coupled with a dip in profitability. Considering
the implications of various emerging international
and domestic factors on the banking system,
regulatory and supervisory policy responses during
the year pertained to initiatives for implementing
risk-based supervision (RBS), enhanced oversight
of financial conglomerates and steps towards
improved coordination among regulators, besides
positioning banks to meet the needs of inclusive
growth. Further, several forward looking initiatives
were undertaken to expand the banking system,
increase competition, further strengthening the
payments and settlement mechanism and
fortification of capital.
transaction testing model operating with a lag.

RBS, on the other hand, is a forward looking
approach inasmuch as it assesses the risk buildup in
banks. Based on the principles and approach for
RBS as suggested by High-level Steering
Committee and after taking into account the
uniqueness of the Indian banking system, the
Reserve Bank has finalised the supervision
framework under RBS. As part of RBS phase I
rollout, 29 banks have been brought under RBS
from 2013-14 constituting approximately 66 per
cent of the total assets of the Indian banking
system.
CCIL
Perspectives on the Indian Banking Sector
29
INFOCUS
pension fund and non-banking finance. Of the 12

identified FC groups, the Reserve Bank is the lead
regulator for five identified FC groups, IRDA is the
lead regulator for four and SEBI is the lead
regulator for three FC groups.
CCIL
Structured and planned approach to further

financial inclusion: The Reserve Bank has been
furthering financial inclusion (FI) through a
combination of strategies including relaxing
regulatory guidelines and providing new products
and other supportive measures to achieve
sustainable and scalable financial inclusion. The
Reserve Bank has adopted a bank-led model for
financial inclusion which seeks to leverage on
technology. A structured and planned approach
was followed under financial inclusion wherein all
banks were advised to implement Board-approved
Financial Inclusion Plans (FIPs) congruent with
their business strategies and comparative
advantage for a three-year period (2010-2013). The
implementation of these plans was closely
monitored by the Reserve Bank. In order to take
financial inclusion to the next stage of universal FI
in which all eligible individuals will have
transactional accounts, banks were advised to draw
up FIPs for 2013-16, which have since been
submitted by the banks.
30
Issue of new bank licenses to further improve

competition and enhance access to banking
Services: The Reserve Bank invited applications for
Licensing of New Banks in the Private Sector. It
received 26 applications for new bank licenses. The
Reserve Bank will soon issue new bank licenses
consistent with the highest standards of
transparency and diligence.
Capital infusion in public sector banks to enhance
capital adequacy: The Basel III capital regulation
has been implemented in India from April 1, 2013
in phases and will be fully implemented as on
March 31, 2018. These norms lay more focus and

importance on quality, consistency and
transparency of the capital base. The Reserve Bank
has estimated the additional capital requirements
of domestic banks for full Basel III
implementation till March 2018. The estimates
suggest that public sector banks will require an
additional capital to the tune of `4.15 trillion, of
which equity capital will be of the order of `1.4 - 1.5
trillion. Being the majority stakeholder,
Government has been infusing capital in these
banks. During the last five years, the Government
has infused `477 billion in the public sector banks.
The Government will infuse `140 billion in the
public sector banks during 2013-14.
Need for improving the asset quality of bank:
While the primary driver of the deteriorating asset
quality was the domestic economic slowdown, the
contribution of other factors like delays in
obtaining statutory and other approvals as well as
lax credit appraisal/monitoring by banks was also
significant. In order to upgrade the banks' credit
monitoring system, the Reserve Bank advised them
to have a robust mechanism for early detection of
signs of distress and to use such early warning
signals to put in place an effective preventive asset
quality management framework. The Reserve Bank
has also advised banks to strengthen the
information sharing mechanism among lenders by
making it compulsory for banks to receive/share
information on borrowers before sanctioning
loans.
The Way Forward
Effective reduction in NPAs and improvements in
the loan recovery process: Banks need to not only
follow the various measures put in place by the
Reserve Bank and the Government of India
effectively for resolution and recovery of bad loans
but also strengthen their due diligence, credit
INFOCUS
Increasing the presence of foreign banks: The

objective of foreign banks' participation in India
was primarily to increase competition, promote
efficiency of the local banking system and also
adapting their sophisticated financial services and
products with respect to domestic banks. At present
foreign banks are operating in India as branches.
From the perspective of financial stability, a move
towards subsidiarisation of foreign banks should
be welcome. India needs foreign banks to
participate more in the growth process, but in
exchange it is important to have more regulatory
and supervisory control over their local operations.
Need to liberalise licensing policies: Regulators
need to ensure that their regulatory stance does not
create barriers to the entry or exit of institutions or
result in unwarranted costs to the economy and
consumers. Accordingly, the Reserve Bank's
Discussion Paper 'Banking Structure in India : The
Way Forward' favours continuous authorisations
of new banks and explores the possibility of
Operations and Performance of Commercial

Banks
The Indian financial landscape is dominated by the
banking sector with banking flows accounting for
over half of the total financial flows in the
economy. Banks play a major role in not just
purveying credit to the productive sectors of the
economy but also as facilitators of financial
inclusion. Although the Indian banking sector
exhibited considerable resilience in the immediate
aftermath of the global financial crisis, it has been
impacted by the global and domestic economic
slowdown over the last two years.
Against the backdrop of a slowdown in the
domestic economy and tepid global recovery, the
growth of the Indian banking sector slowed down
for the second consecutive year in 2012-13. There
was also a decline in the growth of profits of
scheduled commercial banks (SCBs) as credit offtake slowed down and interest rates softened. The
asset quality also deteriorated, more perceptibly for
public sector banks. On the positive side, capital
positions of Indian banks, including public sector
banks, remained strong and above the stipulated
minimum to face any unforeseen losses. There was
also a significant expansion in the outreach of
banking in unbanked rural centres, as financial
inclusion plans completed three years. The short
term target for the banking system could be to lend
support to productive sectors facilitating
economic recovery without hampering asset
quality. In the medium to long-term, sustained
improvements in efficiency and inclusiveness
remain key areas of concern.
Continued need to reduce pre-emption of banks'

resources: One of the mandates for the Reserve
Bank in the RBI Act is ensuring the flow of credit to
productive sectors of the economy. In this context,
it is necessary to reduce banks' requirements of
investing in government securities in a calibrated
way, to what is strictly needed from a prudential
perspective. It is recognised that the scope for such
reduction will increase as government finances
improve. Further, as the penetration of other
financial institutions, such as pension funds and
insurance companies increases, it will be possible
to reduce the need for commercial banks to invest
in government securities.
introducing differentiated licences for small and

wholesale banks and the possibility of converting
large urban co-operative banks into commercial
banks to impart dynamism to the banking system.
CCIL
appraisal and post sanction loan monitoring

systems to minimize and mitigate the problems of
increasing NPAs.
31
INFOCUS
Balance Sheet Operations of Scheduled

Commercial Banks
In continuation with the trend during 2011-12, the
overall growth in balance sheet of banks moderated
further in 2012-13. Slowdown in real economic
activity along with the higher risk aversion by
banks resulted in moderation in credit growth.
Deposits, however, maintained their growth in
2012-13 on account of a revival in the growth of
current and savings account (CASA) which was
held at 33 per cent. In 2012-13, growth in CASA for
new private sector banks, at 18.5 per cent, was the
highest among all bank groups. In part, this could

be attributed to improved competition among
banks in attracting savings deposits following the
deregulation of the savings deposit rate. The share
of savings deposits for new private sector banks
stood at around 25 per cent of their total deposit
base and was the highest among all bank groups in
2013. The Credit - Deposit ratio for all SCBs, on an
outstanding basis, remained broadly unchanged at
about 79 per cent. The incremental C-D ratio of
SCBs posted a declining trend over a major part of
2012-13.
Growth in Balance Sheet of Scheduled Commercial Banks (Per cent)

Item
Public Sector
Banks
Private Sector
Banks
Old private
Sector Banks
New private
Sector Banks
Foreign Banks
All SCBs
CCIL
2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13 2011-12 2012-13
32
1. Capital
-4.2
4.3
4.5
-4.2
6.1
1.7
3.9
15.6
13.9
8.0
10.4
2. Reserve and Surpluses
24.4
15.5
15.5
21.6
18.5
18.9
14.9
22.2
15.6
15.2
20.8
17.2
3. Deposits
14.4
14.9
17.1
18.8
19.6
18.4
16.3
19.0
15.1
4.0
14.9
15.1
3.1. Demand Deposits
-6.3
16.8
4.4
15.4
6.5
15.6
4.0
15.4
9.9
-7.8
-1.8
13.3
3.2. Savings Bank Deposits
12.1
14.4
19.1
19.3
16.3
14.9
19.9
20.5
5.6
2.9
13.1
15.0
3.3. Term Deposits
18.2
14.8
19.7
19.4
22.1
19.5
18.6
19.4
21.0
10.4
18.6
15.4
4. Borrowings
17.2
19.8
38.9
16.1
80.3
28.3
36.4
15.1
29.7
27.4
24.9
19.8
5. Other Liabilities and Provisions
-7.5
15.4
42.1
0.2
12.5
9.6
47.1
-1.0
26.9
-25.1
8.6
2.2
Total Liabilities/Assets
14.1
15.3
21.1
17.5
21.3
18.6
21.0
17.2
19.8
5.7
15.8
15.1
1. Cash and Balances with RBI
-20.5
-0.2
-18.1
5.4
-7.9
-0.2
-20.8
7.1
14.2
-7.4
-18.5
0.4
2. Balances with Banks and Money

at Call and Short Notice
40.7
38.0
15.6
57.9
80.4
52.6
6.5
59.2
13.7
10.7
32.4
37.5
3. Investments
12.8
16.7
24.6
19.0
18.0
23.0
26.5
18.0
21.2
13.7
16.1
17.0
4. Loans and Advances
17.3
15.4
21.2
18.3
24.6
17.3
20.1
18.6
17.6
14.7
18.1
15.9
5. Fixed Assets
5.9
11.2
3.0
8.3
6.9
14.9
2.1
6.6
1.2
20.4
4.8
11.3
6. Other Assets
14.9
2.8
67.5
-7.9
26.9
8.0
74.5
-9.9
26.9
-31.0
27.9
-9.5
Source: Balance Sheets of respective banks.
INFOCUS
While there was a spurt in international liabilities

of banks located in India, international assets of
these banks remained almost unchanged. Maturity
mismatch has always been an area of concern for
the banking sector as long-term infrastructural
loans are financed primarily from deposits of
shorter maturities putting strain on liquidity,
earning and at times, solvency of the bank.
Maturity mismatch analysis suggested a positive
gap (liabilities-assets) in the shortest maturity
bucket of up to 1 year.
Financial Performance
Commercial Banks
of
Scheduled
general, and nationalized banks in particular. New

private sector banks and foreign banks reported an
increase in RoA in 2012-13 as against nationalised
banks and SBI Group. Although the interest
income of new private/foreign banks posted a
lower growth during the year, they could manage to
maintain their profits growth through a reduction
in the growth of their operating expenses,
particularly wage bill. There was a fall in both net
interest margin (NIM) and spread (difference
between return and cost of funds) at the aggregate
level suggesting some improvement in operating
efficiency of SCBs.
Trends in Income and Expenditure of SCBs (Amt in ` Billion)

2011-12
Percentage Variation
Amount
Percentage Variation
16.2
1. Income
7,416.0
29.8
8,614.0
a) Interest Income
6,553.0
33.4
7,636.0
16.5
863.0
8.1
978.0
13.3
2. Expenditure
6,600.0
31.8
7,702.0
16.7
a) Interest Expended
4,304.0
44.0
5,138.0
19.4
b) Operating Expenses
1,376.0
11.7
1,566.0
13.8
of which: Wage Bill
780.0
7.3
873.0
11.9
920.0
16.8
998.0
8.5
1,737.0
16.5
1,910.0
10.0
817.0
16.1
912.0
11.6
2,249.0
16.9
2,498.0
11.1
b) Other Income
c) Provisions and Contingencies

3. Operating Profit
4. Net Profit
5. Net Interest Income (1a-2a)
Net Interest Margin (as % of average assets)
2.9
2.8
Source: Annual Accounts of respective banks.
In 2012-13, interest earnings were adversely affected

with credit growth slowing down and softening of
the interest rates. Interest expended also grew at a
slower pace during the year but its growth was
higher than that of interest earned, thereby putting
a downward pressure on the growth in both
operating and net profits of banks. Return on assets
(RoA), the most commonly used indicator of
profitability, showed a further reduction by about
5 basis points in 2012-13. This reduction was
discernible in the case of public sector banks in
An analysis of the standard accounting measures

and the Data Envelopment Analysis showed an
improvement in the efficiency in the banking
sector over recent decades.
Soundness Indicators
The capital to risk-weighted assets ratio (CRAR)
remained above the stipulated 9 per cent norm
both at the system and bank group levels in 2012-13
but showed a declining trend. The core CRAR (Tier
I) under Basel II too showed a moderate decline.
Amount
2012-13
CCIL
Item
33
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end-March 2013. With the gross NPA ratio reaching

about 3.6 per cent by end-March 2013, the
nationalized banks were positioned next to the SBI
Group. There were also signs of a deepening
deterioration within NPAs with an increase in the
proportion of doubtful loan assets. The slippage
ratio, defined as additions to NPAs during the year
as per cent of standard advances at the beginning of
the year, also showed an increase during 2012-13. At
the aggregate level, the ratio of restructured
The decline in capital positions at the aggregate

level, however, was on account of deterioration in
the capital positions of public sector banks. Public
sector banks remain above the statutory norm for
CRAR. However, as they migrate to the advanced
Basel III framework, both the quantity and quality
(common equity) of capital will need to be
improved, while meeting the growing credit needs
of the economy and maintaining the floor for
public ownership.
Capital to Risk-Weighted Assets Ratio under Basel I and Basel II - Bank Group-wise (per cent)
(As at end-March)
Item/Bank Group
Basel I
Public Sector Bank
Basel II
2012
2013
2012
2013
11.88
11.31
13.23
12.38
Nationalized banks*
11.84
11.39
13.03
12.26
SBI Group
11.97
11.14
13.70
12.67
Private Sector Bank
14.47
15.10
16.21
16.84
Old Private Sector Bank
12.47
12.33
14.12
13.73
New Private Sector Bank
14.90
15.71
16.66
17.52
Foreign Banks
17.30
18.76
16.75
17.87
Scheduled commercial Banks
12.94
12.77
14.24
13.88
Note: *: Includes IDBI Bank Ltd.

Source: Based on off-site returns.
Component-wise Capital Adequacy of SCBs (As at end-March)
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Item
34
Basel I
(Amount in ` billion)
Basel II
2012
2013
2012
2013
1. Capital funds (i+ii)
7,810
8,906
7,780
8,879
i) Tier I capital
5,686
6,595
5,672
6,580
ii) Tier II capital
2,124
2,311
2,109
2,299
2. Risk-weighted assets
60,376
69,742
54,621
63,969
3. CRAR (1 as % of 2)
12.94
12.77
14.24
13.88
9.42
9.46
10.38
10.29
3.52
3.31
3.86
3.59
of which: Tier I
Tier II
Source: Based on off-site returns.
The gross NPA ratio at the aggregate level stood at

3.6 per cent at end-March 2013 up from 3.1 per cent
at end-March 2012. The deterioration in asset
quality was most perceptible for the SBI Group
with its NPA ratio reaching a high of 5 per cent at
standard advances to gross advances stood at 5.8

per cent at end-March 2013. It was the highest for
nationalized banks (at 8.3 per cent) followed by the
SBI Group (at 4.7 per cent).
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Trends in Non-performing Assets - Bank Group-wise (Amount in ` billion)

Private
Public
Foreign
Nationalized
SBI
sector
Item
sector
banks
banks*
Group
banks
banks
Scheduled
commercial
banks
Gross NPAs
Closing balance for 2011-12
1,178.00
696.00
482.00
187.00
62.00
1,429.00
1,650.00
1,022.00
627.00
210.00
79.00
1,940.00
Gross NPAs as per cent of Gross Advances**

2011-12
3.30
2.80
4.60
2.10
2.60
3.10
2012-13
4.10
3.60
5.00
2.00
2.90
3.60
593.00
391.00
202.00
44.00
14.00
652.00
900.00
619.00
281.00
59.00
26.00
986.00
2011-12
1.50
1.40
1.80
0.50
0.60
1.30
2012-13
2.00
2.00
2.00
0.50
1.00
1.70
Net NPAs
Net NPAs as per cent of Net Advances
Notes: 1. *: Includes IDBI Bank Ltd.

2. **: Calculated taking gross NPAs from annual accounts of respective banks and gross advances from off -site returns.
Source: Annual Accounts of banks and off-site returns.
The year 2012-13 was marked by a slowdown in the

growth of credit to all productive sectors, viz.,
agriculture, industry and services. The slowdown
was the sharpest for agriculture and allied activities
(from 14.1 per cent in 2011-12 to 7.6 per cent in
2012-13). There was a slowdown in the growth of
credit to the infrastructural sector within industry
(from 20.8 per cent to 15.8 per cent). The slowdown
in credit to NBFCs (from 24.0 per cent to 12.8 per
cent) - accounting for about one-fifth of the total
credit to the services sector - was an important
reason behind an overall slowdown in the growth
of services sector credit. By contrast, retail loans
was the only segment, which maintained its growth
in 2012-13 (from 15.7 per cent to 12.0 per cent). It is
noteworthy that even in a period of overall
slowdown in credit growth; retail credit maintained
its growth. Growth in retail loans was maintained
in 2012-13 on account of a sustained double digit
growth in housing loans - the largest segment of
retail loans, and a rising growth in auto loans - the
third major segment of retail loans. The increase in
Although there was a rise in the gross NPA ratio in

2012-13, the provisioning coverage ratio (PCR),
defined as provisions for credit loss as per cent of
gross NPAs, showed a marginal decline during the
year at the aggregate level. The decline was most
perceptible for nationalized banks.
Sectoral Distribution of Bank Credit
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In 2012-13, there was a growth of about 37 per cent

in the total number of cases approved for
restructuring under corporate debt restructuring
(CDR) mechanism and the debt thus restructured
posted a growth of 52 per cent, marking a sharp
increase over its corresponding growth in 2011-12.
The growth in the number of cases and amount of
debt receded marginally in the first quarter of 201314. The sectors that witnessed the maximum
distress were iron and steel, and infrastructure. At
end-March 2013, iron and steel accounted for 23
per cent of the total restructured debt, while
infrastructure (including power and
telecommunications) held an almost comparable
share of 22.7 per cent in the total restructured debt.
35
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the growth in credit card receivables too

contributed to the overall growth in retail loans,
although their share in total retail loans was less
than 4 per cent.
There was a rise in the growth of priority sector
credit in 2012-13 against a drop in overall credit
growth during the year. The growth in priority
sector credit, however, remained lower than the
growth in overall credit. In 2012-13, credit to
priority sectors by public and private sector banks
was 36.3 per cent and 37.5 per cent (of Adjusted Net
Bank Credit/ Credit equivalent of Off-Balance
Sheet Exposure, whichever is higher) respectively,
indicating a shortfall against the overall target of 40
per cent.
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Policy Environment
36
Though the Indian banking industry weathered the

recent global financial crisis largely unscathed,
weakening asset quality has emerged as a major
concern. The global financial crisis has brought
into sharp focus, the need for reorienting
prudential policies to have a macro dimension. In
this evolving global and domestic environment,
the Reserve Bank has been constantly reviewing
and fine-tuning its regulatory and supervisory
policies to ensure a sound, resilient, robust and
inclusive banking system that is capable of taking
on various challenges effectively.
Monetary Policy
The monetary policy stance during 2012-13 was
geared towards addressing the sharp slowdown in
growth while not jeopardising the objective of
reigning in inflation. While there was a frontloading of easing of the key policy rate, the repo
rate, by 50 basis points in April 2012, the Reserve
Bank further reduced the repo rate by 25 basis
points each in January and March 2013 using the
policy space made available by the softening of
WPI inflation in the second half of 2012-13,

thereby, leading to a cumulative 100 basis points
easing in 2012-13. The repo rate was further
reduced by 25 basis points in May 2013 to 7.25 per
cent to address the accentuated risks to growth
while noting that upside risks to inflation were still
significant. Considering the imperative need to
curb the mounting inflationary pressures and
anchor inflation expectations and thereby
strengthen the foundations of growth, the repo rate
was increased by 25 basis points each in the midquarter review of September and the second quarter
review of October 2013 to 7.75 per cent.
The year 2012-13 was marked by periods of
significant stress in liquidity conditions. These
were brought on by a number of factors including
high government cash balances maintained with
the Reserve Bank, strong seasonal demand for
currency, the Reserve Bank's intervention in the
foreign exchange market and divergence between
deposit mobilisation and credit off-take of banks.
A number of measures were undertaken for
liquidity management. The cash reserve ratio
(CRR) was reduced in three stages by a cumulative
75 basis points in 2012-13, taking it to 4.0 per cent
of net demand and time liabilities (NDTL) of
banks, its lowest level since 1974. The statutory
liquidity ratio (SLR) was reduced by 100 basis
points to 23.0 per cent of NDTL of banks in August
2012. Besides the liquidity injected through the
daily liquidity adjustment facility (LAF)
operations, the Reserve Bank purchased
government securities worth `1.5 trillion through
open market operations (OMOs) during 2012-13.
During early 2013-14, liquidity conditions
generally improved mainly because of drawdown
of government cash balances and narrowing of the
gap between deposit and credit growth. In order to
contain exchange rate volatility in the domestic
forex market, the Reserve Bank undertook a
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Credit Delivery
In order to increase flow of credit to certain
segments covered under the priority sector, loan
limits were raised with effect from April 1, 2013.
With a view to encouraging exports, the
Government decided to continue to extend interest
subvention of 2 per cent on pre and post shipment
rupee export credit for certain employment
oriented sectors, while increasing the rate of
interest subvention from 2 per cent to 3 per cent,
effective August 1, 2013. In order to hasten the
process of identifying a MSE unit as sick, early
detection of incipient sickness and laying down a
procedure to be adopted by banks before declaring
a unit as unviable, the Reserve Bank issued revised
guidelines on November 1, 2012 for rehabilitation
of sick units in the MSE sector. In view of the
concerns emerging from the deceleration in credit
growth to the MSE sector, an Indian Banks'
Association (IBA) led sub-committee (Chairman:
Shri K.R. Kamath) was set up to suggest a
structured mechanism to be put in place by banks
to monitor the entire gamut of credit related issues
pertaining to the sector. Based on the
recommendations of the Committee, guidelines
were issued on May 9, 2013 for monitoring credit
growth to the MSE sector. The SHG-BLP is a savingled credit product for the unbanked poor. National
Bank for Agriculture and Rural Development
(NABARD) initiated the process of repositioning
the SHG-BLP as SHG2. This approach is basically
aimed at encouraging the poor to save.
In the wake of improvement in exchange market

conditions, the Reserve Bank in its Mid-Quarter
Review on September 20, 2013 began calibrated
withdrawal of exceptional measures taken since
mid-July. The MSF rate was reduced by 75 basis
points to 9.5 per cent and minimum daily
maintenance of CRR was reduced to 95 per cent of
the average fortnightly requirement. Further, based
on the assessment of liquidity condition and in
anticipation of the seasonal pick-up in credit
demand, festival-related currency demand, and the
Government's borrowing programme in second
half of 2013-14, with a view to easing the liquidity
pressure the Reserve Bank conducted OMO
purchases of `99.74 billion on October 7, 2013.
Moreover, continuing with the gradual
normalisation process, the MSF rate was lowered by
50 bps from 9.5 per cent to 9.0 per cent, and
additional access to liquidity through term repo up
to 0.25 per cent of NDTL was announced on
October 7, 2013. As a result of these measures, the
liquidity situation eased in October 2013. The
Reserve Bank in its Second Quarter Review of
Monetary Policy 2013-14 reduced the MSF rate
further by 25 basis points to 8.75 per cent and hiked
the repo rate by 25 basis points to 7.75 per cent;
thereby completing the process of realigning the

interest rate corridor to normal monetary policy
operations. Also, Reserve Bank increased the
liquidity access through term repos of 7-day and 14day tenor from 0.25 per cent of NDTL of the
banking system to 0.5 per cent.
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number of measures since mid-July 2013 such as

increasing the MSF rate and the bank rate by 200
bps to 10.25 per cent, announcing an auction of
`120 billion in open market sales of government
securities, capping LAF borrowing access for each
individual bank at 0.5 per cent of its NDTL and
increasing the minimum daily maintenance of
CRR from 70 per cent to 99 per cent of the daily
average requirement on a fortnightly basis. Further,
the Reserve Bank auctioned `960 billion of
Government of India Cash Management Bills in
the weeks following its announcement on August
8, 2013.
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CCIL
Financial Inclusion
38
In order to facilitate the smooth implementation

of the Electronic Benefit Transfer (EBT) scheme for
routing MGNREGA wages, other social security
benefits including proposed cash transfers with
respect to subsidies on kerosene, LPG and
fertilisers, guidelines were issued on November 30,
2011 to all scheduled commercial banks to ensure
opening of Aadhaar-enabled bank accounts of all
the beneficiaries including those residing in
villages with less than 2,000 population. Banks
were advised to expand their reach in remote
locations either through a branch or Business
Correspondent (BC) or other modes as every
eligible individual should have a bank account for
DBT to take place. State Level Bankers' Committee
(SLBC) convenor banks of concerned states and
Lead banks of selected districts were advised in
October 2012 to co-ordinate with the state
administrator and field level implementing
agencies to ensure smooth rollout of Aadhaar
enabled payment systems. To facilitate speedier
branch expansion in unbanked rural centres for
ensuring a seamless roll-out of the DBT/EBT
scheme of the Government of India, instructions
were issued to banks on May 28, 2013 that they may
consider front-loading (prioritising) the opening
of branches in unbanked rural centres over a threeyear cycle co-terminus with their Financial
Inclusion Plan (FIP) for 2013-16. Various measures
were also taken to improve financial inclusion and
financial literacy for MSEs. In order to ease some of
the avoidable inconveniences faced by customers
due to some provisions in KYC guidelines, the
Reserve Bank initiated steps to reduce the
inconvenience a customer faces while opening a
bank account or when transferring his account to
another place.
In order to address gender related aspects of

empowerment and financial inclusion, Union
Budget 2013-14 announced to set up India's first
Women's Bank as a public sector bank with `10
billion as initial capital. As a follow up, the Reserve
Bank gave licence to the Bharatiya Mahila Bank
Ltd. on September 25, 2013. The registered office of
the proposed Bharatiya Mahila Bank Ltd. will be in
New Delhi.
Prudential Regulatory Policy
As per an announcement made in the Union
Budget 2010-11, the Reserve Bank put out draft
guidelines on licensing of new banks in the private
sector on August 29, 2011 for public comments
and the final guidelines were released on February
22, 2013 after amendments to the Banking
Regulation Act, 1949 were made in December 2012.
The last date for receipt of applications was July 1,
2013. The Reserve Bank received 26 applications
for new bank licences. The applications are being
processed. A High Level Advisory Committee will
screen the applicants and make its
recommendations to the Reserve Bank which will
make the final decision in this regard. The new
banks in the private sector will be set up through
wholly-owned Non-Operative Financial Holding
Companies (NOFHCs). The Reserve Bank also
released the framework for setting up of Wholly
Owned Subsidiaries (WOS) by foreign banks in
India on November 6, 2013. The policy framework
is guided by the two cardinal principles of
reciprocity and single mode of presence. As a
locally incorporated bank, the WOSs will be given
near national treatment which will enable them to
open branches anywhere in the country at par with
Indian banks (except in certain sensitive areas
where the Reserve Bank's prior approval would be
required). The policy incentivises the existing
Exchange Traded Funds (ETF) and units of gold

mutual funds. However, banks can provide finance
for the genuine working capital requirements of
jewellers. The guidelines regarding bank lending
against gold were also rationalized.
With the objective of rationalising the branch

authorisation policy and to foster more
competition, bank branching was made completely
free for well managed domestic SCBs in every part
of the country. On September 19, 2013 Reserve
Bank extended the general permission to domestic
SCBs (other than RRBs) for opening branches
without its prior approval to branches in Tier 1
centres also, subject to certain conditions.
To enable banking companies in India to raise

capital in accordance with the international best
practices and to ensure that control of banking
companies is in the hands of fit and proper
persons, provisions were made in the Banking
Regulation Act, 1949, effected by an amendment
notified by the Government of India vide Banking
Law Amendments Act, 2012. The notification
stipulates that it would be mandatory for persons
to obtain prior approval of the Reserve Bank to
acquire five per cent or more of the share capital of
a banking company. The notification confers
power upon the Reserve Bank to impose such
conditions as it deems necessary while granting
such approvals. In this regard guidelines are being
issued to banks shortly.
A comprehensive provisioning framework for

banks with dynamic and countercyclical elements
is being contemplated to overcome the limitations
of the current provisioning policy. In this regard, a
Discussion Paper on 'Introduction of Dynamic
Provisioning Framework for Banks in India' was
released on March 30, 2012 for public comments.
The primary objective of the dynamic provisioning
framework is to smoothen the impact of incurred
losses on the profit and loss account through the
cycle. With identification of bulk deposits being
important from the viewpoint of asset-liability
management (ALM), it has been decided that with
effect from April 1, 2013 the expression 'bulk
deposits' would be used only for single Rupee term
deposits of `10 million and above.
Addressing the concern that direct bank financing
for purchase of gold in any form, viz.,
bullion/primary gold/jewellery/gold coins could
lead to fuelling of the demand for gold for
speculative purposes, the Reserve Banks directed
that with effect from November 19, 2012, no
advances should be granted by banks for purchase
of gold in any form including primary gold, gold
bullion, gold jewellery, gold coins, units of gold
On request from a depositor, a bank shall allow

withdrawal of a rupee term deposit of less than `10
million, before the completion of the period of the
deposit agreed upon at the time of making the
deposit. However, banks will have the freedom to
determine their own penal interest rates on
premature withdrawal of term deposits. Banks
should ensure that the depositors are made aware of
the applicable penal rates along with the deposit
rates. The issue of Intersol charges was deliberated
upon by the Committee on Customer Service in
Banks (Chairman: Shri M. Damodaran) and, banks
were advised by the Reserve Bank on July 1, 2013
that if a particular service is provided free at home
branch then the same should be available free at
non-home branches also.
Reserve Bank issued draft guidelines on July 2,
2013 on the methodology to be followed for
CCIL
foreign bank branches to convert into WOS due to

the attractiveness of near national treatment. Such
conversion is also desirable from the financial
stability perspective, factoring in the lessons from
the global economic crisis.
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39
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CCIL
computing incremental provisioning and capital

requirements for exposure to corporates having
unhedged foreign currency exposures. Draft
guidelines also require banks to factor in the risk
arising from high forex exposures of corporates in
their internal rating processes and share this data
with the concerned credit rating agencies so that
the external bank loan rating may also factor in this
risk. Based on the comments/feedback received,
the Reserve Bank will finalise the guidelines and
banks will be required to implement the same from
October 1, 2013.
40
Commercial Real Estate (CRE) being a sector

prone to volatility has attracted stricter prudential
norms from regulators globally. The Reserve Bank
has also prescribed stricter prudential norms in
terms of higher risk weight at 100 per cent and
higher provision at 1.0 per cent for CRE standard
assets as against generally a lower provision of 0.40
per cent for other standard assets. Guidelines were
issued to banks on June 21, 2013 regarding carving
out a Commercial Real Estate - Residential
Housing (CRE-RH) segment from CRE with lower
risk weight at 75 per cent and lower provisioning at
0.75 per cent for standard assets as compared to
CRE. CRE-RH would consist of loans to
builders/developers for residential housing
projects (except for captive consumption). It was
also advised that such projects should ordinarily
not include non-residential CRE.
Some of the existing prudential guidelines on
restructuring of advances by banks/financial
institutions have been revised following the
recommendations of the Working Group
(Chairman: Shri B. Mahapatra) to Review the
Existing Prudential Guidelines on Restructuring
of Advances by Banks/Financial Institutions.
Accordingly, the regulatory forbearance on asset
classification will stand withdrawn from April 1,
2015 except in case of change of date of
commencement of commercial operation (DCCO)

of infrastructure and other project loans. Further,
provisioning requirement on all fresh standard
restructured accounts has been increased to 5.00
per cent with effect from June 1, 2013. The
increased provisioning requirement for the stock
(as on May 31, 2013) of restructured standard
accounts will be implemented in a more gradual
way i.e. 3.50 per cent - with effect from March 31,
2014 (spread over the four quarters of 2013-14);
4.25 per cent - with effect from March 31, 2015
(spread over the four quarters of 2014-15); and 5.00
per cent - with effect from March 31, 2016 (spread
over the four quarters of 2015-16). With a view to
enabling the upgradation of risk management
framework as also capital efficiency likely to accrue
to the banks by adopting the advanced approaches
envisaged under the Basel II Framework and the
emerging international trend in this regard,
guidelines on Advanced Measurement Approach
(AMA) were issued on April 27, 2011. Applications
for migration to advanced measurement approach
were opened for banks with effect from April 1,
2012.
Supervisory Policy
The Board for Financial Supervision (BFS), which
was constituted in November 1994, continued to
be the principal force behind the Reserve Bank's
supervisory and regulatory initiatives. In BFS
meetings, it was decided to make the format of the
inspection report more risk focussed and a
Monitorable Action Plan (MAP) with a timeline
for completion was issued to the banks. This
resulted in focussed supervisory attention on key
supervisory concerns. Based on BFS'
directions/guidance, thematic reviews were
conducted in certain areas such as the KYC/AML
environment in banks, banks' exposure to the real
estate/housing sector and major frauds beyond a
threshold limit. Under directions from BFS,
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In March, 2013, an online media portal raised

certain allegations against three private sector
banks that these banks were indulging in practices
that encouraged money laundering, sale of gold
and other third party products such as insurance
and wealth management. The allegations by media
against banks accelerated the process of
undertaking scrutiny in 39 banks by the Reserve
Bank during March-May, 2013. Based on the
findings of the scrutinies, 36 banks were issued
show cause notices for violation of certain
regulations and instructions issued by the Reserve
Bank. After considering the facts of each case and
the individual bank's reply, the Reserve Bank came
to the conclusion that some of the concerns were
substantiated and warranted imposition of
monetary penalty. Monetary penalty was imposed
on 31 banks. The thematic reviews of KYC/AML
systems and compliance in banks revealed the need
In order to have a strong internal audit control

framework, banks were advised on June 26, 2012 to
put in place similar policy guidelines and
procedures as applicable in the case of compliance
officers of banks for appointment/changes of the
head, internal audit. Banks were advised on
September 13, 2012 to ensure strict adherence to
the KYC/AML guidelines issued from time to time
in opening, risk categorisation and monitoring of
transactions in customer accounts. Banks were
further advised that they will be held responsible
for losses incurred by customers by way of
deposits/remittances from such accounts if they
are found to be in violation of extant
regulations/statutory requirements, besides
inviting supervisory action. The Reserve Bank
advised the PSBs on November 30, 2012 that they
should take adequate steps to strengthen their risk
management systems, credit appraisal and sanction
process, post-sanction monitoring and follow-up
and have a robust MIS mechanism for early
detection of incipient weaknesses/distress and for
taking steps for remedial measures and recovery of
bank's dues. They were also advised that the
restructuring of advances should be undertaken in
a transparent and objective manner and in
conformity with regulatory guidelines. The
progress in reduction in NPAs and restructured
accounts should be regularly reviewed.
In the light of the recommendations of the High

Level Steering Committee (HLSC) (Chairman: Dr.
K. C. Chakrabarty) to review the supervisory
processes for commercial banks, on September 28,
2012 banks were informed of the imminent
transition to a risk-based approach to supervision
from the supervisory cycle beginning April 2013 in
two phases. They were also asked to put in place an
institutional mechanism to monitor the progress
made and ensure compliance to the best practices
on risk management systems. In order to
rationalise processes and procedures in the Reserve
Bank and to provide increased operational
autonomy to the top management of banks, the
existing guidelines which require furnishing of a
report on cases of attempted fraud involving an
amount of `10 million and above to the Reserve
Bank was dispensed with from November 15, 2012.
However, the banks were advised to continue to
place individual cases involving `10 million and
above before the Audit Committee of their Boards.
CCIL
guidelines on a revised compensation structure

have been issued to private sector and foreign
banks. With regards to supervision over urban cooperative banks (UCBs), BFS approved the Revised
Graded Supervisory Action, financial restructuring
of UCBs under directions and made the rating
model for UCBs less complex. The BFS reviewed
the regulations regarding rural credit institutions
and approved a proposal to issue directions to
unlicenced district central co-operative banks
(DCCBs).
41
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for better regulatory compliance by banks. Certain

corrective measures were envisioned and
subsequently various guidelines were issued to
banks: (i) draft guidelines on wealth management
services offered by banks; (ii) detailed guidelines on
marketing and distribution of third party financial
products; and (iii) detailed guidelines on KYC
norms/AML standards/Combating of Financing
of Terrorism (CFT).
CCIL
Based on the thematic reviews and the follow-up

action taken, the Reserve Bank has provided a list
of actionable issues to banks. It has been felt that
inspections and scrutinies have to be more targeted
and the focus should be on 'the results' rather than
'the mere processes'. Therefore, with a view to
improving the focus and quality of inspections and
scrutinies of the Reserve Bank, a Guidance Note for
inspecting officers, on the areas that may be
concentrated upon while assessing the adherence to
KYC/AML guidelines by banks was issued.
42
The Reserve Bank advised banks on June 7, 2013 to

subject title deeds and other documents with
respect to all credit exposures of `50 million and
above to periodic legal audit and re-verification of
title deeds with relevant authorities as part of a
regular audit exercise till the loan stands fully
repaid. Banks were also advised to furnish a review
note to their Boards/audit committees of the Board
at quarterly intervals on aspects such as number of
loan accounts due for legal audit for the quarter,
total accounts covered, list of deficiencies observed
by the auditors, number of accounts in which the
rectification could not take place and course of
action to safeguard the interests of the bank in such
cases.
Basel Committee on Banking Supervision (BCBS)
initiated a Quantitative Impact Study (QIS) to
assess the potential impact of a consultative
document published in March 2013, Supervisory

Framework for Measuring and Controlling Large
Exposures. The Reserve Bank, being a member of
the Large Exposure Group, has initiated QIS in its
jurisdiction by seeking details from six large banks
(three from the public sector and three from the
private sector). The results of data so collected have
been submitted to BCBS for further analysis.
With the implementation of core banking solution
(CBS) in public sector banks (PSBs) with
concomitant centralisation of
information/documents, streamlining of MIS and
increased operational efficiency, it was considered
necessary to revise the professional and other
norms for selecting statutory auditors and for
rationalising the existing system of extensive
branch audit of PSBs. As per revised norms, besides
prescribed experience, at least two partners of the
firm or its paid Chartered Accountants must
possess DISA/CISA/ISA or any other equivalent
qualification. The Financial Stability Board (FSB)
undertook a peer review on resolution regimes with
the objective of evaluating the FSB jurisdictions'
existing resolution regimes and any planned
changes to those regimes using key attributes (KAs)
as a benchmark. Among others, the resolution
regime in India, which is a member of FSB, was also
evaluated and a number of areas for reforms were
identified.
During 2012-13, the Deposit Insurance and Credit
Guarantee Corporation (DICGC) settled aggregate
claims for `1,998 million with respect to 63 cooperative banks (15 main claims and 154
supplementary claims) as compared with claims for
`2,873 million during the previous year. The size of
the Deposit Insurance Fund (DIF) stood at `361
billion as on March 31, 2013, yielding a Reserve
Ratio (DIF/Insured Deposits) of 1.7 per cent.
INFOCUS
Given the problems being faced by NBFCs-MFI,

the margin cap for lending by NBFCs-MFI
irrespective of their size stands at 12 per cent till
March 31, 2014. With effect from April 1, 2014,
margin cap as defined by the Report of the SubCommittee of the Central Board of Directors of
Customer Service in Banks

An internal Working Group for revision and
updation of the Banking Ombudsman Scheme
(BOS), 2006 was constituted by the Reserve Bank in
July 2012 and its recommendations are being
examined by the Reserve Bank for implementation.
The Committee on Customer Service in Banks
(Chairman: Shri M. Damodaran) had made 232
recommendations in its report. Of these, 155
recommendations stand implemented. Some of the
important recommendations which are yet to be
implemented are: minimum account balancetransparency, uniformity in charges for nonmaintenance, charges for basic services,
compensation for wrong returns of cheques by
banks, internet banking - secure total protection
policy, home-loans - non-discrimination between
existing and new borrowers with floating interest
rate and onus on banks to prove customer
negligence. The Reserve Bank is in consultation
with the Indian Banks' Association (IBA) for early
implementation of these recommendations.
During 2012-13, a new category of NBFC, viz.,

Non-Banking Financial Company - Factors was
created and a regulatory framework in the form of
entry point capital and prudential regulations was
placed on them. NBFCs lending against collateral
of gold jewellery were advised to maintain a loan-tovalue (LTV) ratio not exceeding 60 per cent and to
disclose in their balance sheets the percentage of
such loans to their total assets. If the loans extended
by a NBFC comprise 50 per cent or more of its
financial assets, it shall maintain a minimum Tier-l
capital of 12 per cent by April 01, 2014. All NBFCs
were advised that no advances should be granted by
them for purchase of gold in any form. The
recommendations of the Working Group to Study
the Issues Related to Gold Imports and Gold Loans
NBFCs in India (Chairman: Shri K.U.B. Rao) set
up by the Reserve Bank and relating to NBFCs
lending against the collateral of gold jewellery, were
broadly accepted by the Reserve Bank and
guidelines were issued covering inter alia aspects
such as appropriate infrastructure for storage of
gold ornaments, prior approval of the Reserve
Bank for opening branches in excess of 1000 in
number, standardisation of value of gold in
arriving at LTV Ratio, verification of the ownership
of gold jewellery and process and procedures for
auction of gold jewellery. The Fair Practices Code
has been revised to include sector specific features
to enhance transparency and fair practices relating
to micro lending and lending against collateral of
gold in the light of operational issues surrounding
these activities.
Reserve Bank of India to Study Issues and

Concerns in MFI Sector (Chairman: Shri Y.H.
Malegam) shall not exceed 10 per cent for large
MFIs (loans portfolios exceeding `1 billion) and 12
per cent for others. In view of their unique business
model a separate set of guidelines were issued for
core investment companies (CICs), registered with
the Reserve Bank, for their entry into insurance
business. A separate set of regulations have been
placed on overseas investments by CICs.
Guidelines were issued with regard to private
placement of non-convertible debentures by
NBFCs after certain adverse features came to the
notice of the Reserve Bank. The guidelines aim to
bring NBFCs at par with other financial entities as
far as private placement is concerned by restricting
the maximum number of subscribers.
CCIL
Non-Banking Financial Companies (NBFCs)
43
CCIL
INFOCUS
44
The Reserve Bank undertook policy initiatives as

outlined in the Payment System Vision Document
2012-15 focusing on migrating payment
transactions from cash/paper modes to electronic
modes and also increasing the accessibility of
payment systems to people who are presently
excluded. The major policy initiatives taken during
the year such as widening access to centralised
payments systems, various measures undertaken to
make NEFT more efficient and rationalization
Merchant Discount Rates (MDR) for debit card
transactions to encourage its usage even for small
value transactions. An oversight framework
commensurate with international standards
prescribed by the Committee on Payment and
Settlement Systems (CPSS) has been put in place to
monitor the activities of the 44 authorised entities
(both bank and non-bank) operating payment
systems in the country. Also, the Clearing
Corporation of India Limited (CCIL) was assessed
against the new PFMI principles. The Technical
Committee to Examine Uniform Routing Code
and Account Number Structure (Chairman: Shri
Vijay Chugh) recommended continuation of IFSC
and implementation of International Bank
Account Number (IBAN). However, the
Committee noted that IBAN will not bring in
portability of accounts across banks. The Report of
the Committee is under examination.
To address the issue of absence of a dedicated
system for facilitating bill payments and for
providing common infrastructure for all bill
payment needs of the public, Committee to Study
the Feasibility of Implementation of Giro based
Payment System in India (Chairman: Shri G
Padmanabhan) was constituted which
recommended that a giro based payment system
christened the India Bill Payment System (IBPS)
may be designed and implemented in the country
which will provide bill payment services to all
stakeholders at one single place. The Report has
been examined and the proposal to set up the Giro

Advisory Group has been approved by the Board
for Regulation and Supervision of Payment and
Settlement Systems (BPSS).
To strengthen electronic modes of payments and
further mitigate the risks faced by
customers/banks, guidelines have been issued to
banks and other stakeholders to put certain security
measures in place in a time bound manner. In view
of the increasing volumes and changing business
requirements, the Reserve Bank is replacing the
existing RTGS with a new system which provides
for improved functions and features. Some of the
new features implemented in the new system are
advanced liquidity management facility; Extensible
Markup Language (XML) based messaging system
conforming to ISO 20022; real time information
and transaction monitoring and control systems;
and gridlock avoidance mechanism and advanced
queue management techniques. In NG-RTGS, the
ISO 20022 message formats are being used for
transmitting RTGS messages, this is first instance
across the globe, of usage of this message formats
for high value payment systems.
Banking Sector Legislation
The Banking Laws (Amendment) Act, 2012 came
into force from January 18, 2013 enhancing the
powers of the Reserve Bank. The Enforcement of
Security Interest and Recovery of Debt Laws
(Amendment) Act, 2012 (except Section 8 and
Section 15 (b)) that was brought into force with
effect from January 15, 2013, amends the
Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act,
2002 (SARFAESI Act) and the Recovery of Debts
Due to Banks and Financial Institutions Act, 1993
(RDDBFI Act). The definition of bank both in
the SARFAESI Act and in the RDDBFI Act is
amended to include 'multi state co-operative bank'
so that the provisions of said Acts apply to multi-
INFOCUS
Co-operative banks play an important role in

meeting the credit requirements of both the urban
and rural India. Though they account for a small
share in the total credit they hold a significant
position in credit delivery as they cater to different
geographic locations and demographic categories.
Urban Co-operative Banks
The total number of UCBs at end-March 2013
stood at 1,606 as against 1,618 at end-March 2012.
There has been an increase in asset concentration
within the UCB sector in recent years, partly as an
outcome of consolidation. The assets of UCBs
increased by 11.4 per cent in 2012-13. On the other
hand investments of these institutions showed
relatively higher growth in 2012-13 on account of a
Rural Co-operatives
The share of short-term credit co-operatives,
comprising State Co-operative Banks (StCBs),
District Central Co-operative Banks (DCCBs) and
Primary Agricultural Credit Societies (PACS),
continued to be above 90 per cent of the total assets
of the rural co-operative credit institutions at endMarch 2012 while the long-term credit cooperatives accounted for the remaining 10 per cent
of total assets. The financial performance of shortterm credit co-operatives, at the aggregate level,
showed losses in 2011-12 in contrast to profitability
in the preceding three years primarily due to the
losses incurred by the primary agricultural credit
societies. While the StCBs and DCCBs reported net
profits during 2011-12, the extent of losses incurred
by PACS, outpaced the profits of the other two tiers.
Long-term credit co-operatives showed a continued
deterioration in profitability.
The growth in the balance sheet of StCBs was
sustained in 2011-12. The StCBs' net profits in
Developments in Co-operative Banking
sharp increase in SLR investments. UCBs' net

profits witnessed a moderation during 2012-13.
There was a sharp increase in both their interest and
non-interest income. The share of non-interest
income remained nearly stable both for SCBs and
UCBs. However, UCBs' total expenditure also rose
during the year primarily due to a pick-up in the
interest component of expenditure. Major
indicators of profitability like Return on Assets and
Return on Equity remained largely at previous
year's levels. The gross non-performing assets
(NPAs) of UCBs exhibited a decline in absolute
terms as well as per cent to total advances in 2012-13
vis-a-vis 2011-12. About 88 per cent of UCBs
reported CRAR above the statutory minimum in
2012-13. The banking business of UCBs
comprising of deposits plus advances continued to
be concentrated largely in the western region.
CCIL
state co-operative banks and the measures for

recovery through the Debt Recovery Tribunals
(DRTs) would now be available to them.
Securitisation and reconstruction companies can
now convert any part of the debt into equity/shares
of a borrower company. Secured creditors can
acquire the immovable property in full or partial
satisfaction of their claim against the defaulting
borrower, in times when no buyer for the amount
of reserve price is available. The National Housing
Bank (Amendment) Bill, 2012 was introduced in
the Lok Sabha on April 30, 2012. It seeks to amend
the National Housing Bank (NHB) Act, 1987. The
Bill provides for transfer of shareholding of the
Reserve Bank in NHB to the Central Government
to avoid conflict of ownership and regulatory role.
The Micro Finance Institutions (Development and
Regulation) Bill, 2012 was introduced in the Lok
Sabha on May 22, 2012 with a view to provide a
statutory framework for promotion, development,
regulation and orderly growth of micro finance
institutions (MFI) and thereby to facilitate
financial inclusion.
45
INFOCUS
2011-12 were more than double the amount

recorded by these institutions in 2010-11 as growth
in income outpaced that of expenditure. There was
a decline in the amount of NPAs of StCBs in 201112 largely due to decline in sub-standard and
doubtful assets. District Central Co-operative
Banks (DCCBs) witnessed near stable growth in
their balance sheet in 2011-12. They also reported
better performance in terms of net profit in 2011-12
as compared to 2010-11 facilitated by an increase in
interest income. The asset quality of DCCBs
improved in 2011-12 with the NPA ratio showing a
decline.
Non-Banking Financial Institutions
Non-Banking Financial Institutions (NBFIs) are a
heterogeneous group of institutions that cater to a
wide range of financial requirements and can
broadly be grouped as financial institutions (FIs),
non-banking financial companies (NBFCs) and
primary dealers (PDs).
CCIL
Financial Institutions
46
As at end-March 2013, there were four financial

institutions (FIs) the Export-Import Bank of India
(EXIM Bank), National Bank for Agriculture and
Rural Development (NABARD), National
Housing Bank (NHB) and Small Industries
Development Bank of India (SIDBI). The
combined balance sheet of all the four
FIs expanded by 15.9 per cent during 2012-13. On
the liability side, deposits along with bonds and
debentures constituted more than 60 per cent of
total liabilities. On the assets side, loans and
advances continued to be the single largest
component, accounting for 88.8 per cent of total
assets. Commercial papers (CPs) were the major
instruments for raising funds from the money
market for all the four FIs during 2012-13.
Financial performance of FIs improved during
2012-13 as both their operating and net profits

increased. As compared to last year, net NPAs of FIs
at aggregate level increased mainly on account of
higher net NPAs in respect of EXIM Bank, SIDBI
and NHB. All the four FIs maintained a CRAR
higher than the minimum stipulated norm of 9 per
cent.
Non-Banking Financial Companies
Based on liabilities, NBFCs are classified into two
categories - Category A companies (NBFCs-D),
and Category B companies (NBFCs not raising
public deposits or NBFCs-ND). During 2012-13,
various policy measures were introduced to
improve the regulation and supervision of NBFCs.
During the year, the consolidated balance sheet of
NBFCs-D expanded marginally by 2.2 per cent. On
the liability side, during 2012-13, borrowings from
banks, albeit declined, constituted the biggest
source of funding for NBFCs-D. Debentures and
public deposits were the next important sources of
finance. Borrowings from FIs were relatively
minimal but this picked up dramatically by 170 per
cent during the year. On the contrary, borrowings
from government and inter-corporate borrowings
declined substantially. On the asset side, loans and
advances of NBFCs-D constituted close to threefourth of their assets. The investments declined
during the year mainly on the back of a decline in
investments in equity shares. The investments in
commercial paper also declined substantially.
Investment in government securities, debentures &
bonds, and mutual funds schemes, however,
showed an increase. Notwithstanding a decline in
the asset size of LCs, the total assets of the NBFCs-D
sector registered a marginal increase during 2012-13
mainly due to rise in assets of AFCs. During 201213, the net profit of NBFC-D showed marginal
improvement, while the cost-to-income ratio rose.
They also witnessed deterioration in asset quality.
INFOCUS
NBFCs-ND-SI
The consolidated balance sheet of NBFCs-ND-SI
expanded by 19.5 per cent during 2012-13. The
NBFCs-ND-SI borrowed mainly by floating
debentures, followed by borrowings from banks
and FIs, commercial paper, and intercorporate
borrowings. Unsecured borrowings of NBFCs-NDSI, constituting slightly less than half the total
borrowings, expanded significantly and outpaced
the growth in secured borrowings. The asset
position of NBFCs-ND-SI further strengthened in
2012-13. Loans and advances, which form a major
part of the assets, increased by 22 per cent. The
financial performance of the NBFCs-NDSI sector
improved as reflected in an increase in their net
profit during 2012-13. As at end-March 2013, a
majority of the reporting companies maintained
the stipulated minimum norm of 15 per cent
capital adequacy as measured by CRAR.
Primary Dealers
As at end-June 2013, there were 21 Primary Dealers
(PDs) operating in financial markets, of which 13
were run by banks and were called as bank-PDs and
the remaining eight were non-bank entities, which
are known as standalone PDs. During 2012-13, the
bid-to-cover ratio in both dated Government of
India (GoI) securities and treasury bills of PDs were
marginally higher than they were in the previous
year. All the PDs achieved the stipulated minimum
success ratio (bids accepted to the bidding
Though the capital of PDs declined by 2.2 per cent

in 2012-13, it was more than compensated by a
sharp rise in reserves and surplus resulting in an
increase in the net owned funds (NOF) to the tune
of 5.8 per cent. Borrowings remained the major
source of funds, accounting for 84 per cent of the
total funds. They had significant increase in
investments in commercial papers (CPs), bonds and
equities. The profit after tax of standalone PDs
showed a significant increase of 146 per cent during
2012-13 on account of huge growth in trading
profits on the back of declining interest rate
scenario for the later part of 2012-13. Reflecting
their increase deficiency, PDs witnessed an increase
in RoNW and RoAA and a decline in cost-toincome ratio. Their CRAR declined from 53.8% as
of March 2012 to 39.4% as of March 2013, due to
significant rise in their holding of risk-weighted
assets.
The assets of RNBCs declined marginally during

the year ended-March 2013. Both the income and
expenses of RNBCs declined during 2012-13. As the
decline in total income of RNBCs was less than the
decline in total expenditure, their operating profits
increased modestly and further due to lesser tax
outgo their net profit increased by 9.1% during
2012-13.
commitment) of 40 per cent for treasury bills (TBills) and cash management bills (CMBs) put
together. In the auctions of dated securities, the
share of PDs (bids accepted to the securities issued)
increased from 47.7 per cent in 2011-12 to 51.1 per
cent in 2012-13. As compared to 14 instances of
partial devolvement for `121.1 billion on the PDs
in 2011- 12, there were only two such instances for
`18.3 billion during 2012-13, which reflected
favourable bond market conditions during the year.
In the secondary market, PDs individually achieved
the required minimum annual total turnover
(outright and repo transactions) ratio of 5 times in
G-Secs and 10 times in T-Bills. PDs also achieved the
minimum annual outright turnover ratio of 3 times
in G-Secs and 6 times in T-Bills. Despite their higher
turnover, the share of standalone PDs declined,
from 26.3 to 16.4 per cent in outright transactions
and from 20.3 to 19.2 per cent in repo transactions,
respectively during the year.
CCIL
Residuary Non-Banking Companies (RNBCs)
Source: www.rbi.org.in
47
ARTICLE
SUMMARY
Measuring Capital Adequacy Supervisory Stress Tests in a Basel World

Larry D. Wall/Research Department/Federal Reserve Bank of Atlanta/WP
CCIL
Prior to 2009, capital adequacy ratios have been an

important tool of prudential supervision and the
focus was to analyze the overall financial stability of
the banking system along with the risk in selected
parts of banks' balance sheet. After 2009, two
relatively sophisticated approaches - Basel III and
Stress Tests are emphasized for measuring capital
adequacy, but both are costly risk-based measures
for bank's capital adequacy requirement. The paper
explores strengths and weaknesses of both
approaches - stress testing and Basel III and analyzes
how stress testing could mitigate weaknesses in the
way Basel III measures credit, interest rate risk and
bank capital and how it creates countercyclical
capital buffers. The primary reason for comparing
strengths and weaknesses of both is that the
supervisors have considerably more flexibility in
the implementation of the stress tests and can use
that flexibility to minimize the impact of Basel III's
weakness. The secondary reason is that Basel III
purports to measure the full range of bank risks
whereas the stress tests only measures the losses
associated with a handful of specific scenarios.
48
As stress testing is in place for risk measure across

the globe, the question of concern is what the
incremental value of Basel III implementation is.
The paper also discusses the potential contributions
of stress testing to overcome weaknesses in Basel
III's approach to measuring credit risk, interest rate
risk and bank capital. The paper finds that stress
testing could provide an alternative method of
implementing countercyclical capital buffers that
may be less subject to political pressures than the
mechanism in Basel III.
Both stress testing and Basel III are costly risk-based
measurements and rely on projections of losses in
an extreme scenario to evaluate the adequacy of

individual bank's capital. Both measures require the
estimation of statistical models, but differ in some
fundamental ways. The stress tests as currently
applied to measuring individual bank capital
adequacy are conditional measures with the risk
adjustment occurring via reductions in capital (the
numerator of the capital adequacy ratio). The stress
tests begin with several different regulatory
measures of capital adequacy. The stress tests are
dynamic as they simulate how these regulatory
ratios would evolve over time and are conditional in
that results are calculated for a specific scenario for
the economy. The primary focus of the stress tests
has been on estimating changes in accounting
capital following the standards set by the Financial
Accounting Standards Board (FASB) in the US or
the International Financial Reporting Standards
(IFSR) in the EU. The estimates of the change in
accounting capital are based in part on estimates of
each bank's losses in each portfolio in each period.
The first step in conducting a stress test is to
estimate the historic impact of economic variables
such as GDP growth on bank's losses and preprovision net revenue (PPNR) given certain
important characteristics of each bank's portfolio.
The next step is to develop one or more internally
consistent scenarios for the future evolution of the
economy. Estimates of losses and PPNR for each
period in each scenario are then obtained by
plugging in the characteristics of the bank's
portfolio and the stress scenario into the bank's and
the supervisor's model estimated using historical
data. The projected losses and projected capital
distribution are subtracted from PPNR to estimate
each period's change in capital. The capital at the
end of each period is then its value at the start of the
ARTICLE
sUMMARY
Basel III provides three different methods of risk

weighting assets. In the Standardized Approach, the
supervisors provide the risk weights to the banks
based on the supervisor's estimates of the riskiness
of different assets. In the internal rating based (IRB)
approach banks supply their own estimates of the
probability of default which is then entered into
supervisory models to obtain risk weights. Finally,
in the advanced IRB approach, banks also come up
with their own estimates of loss given default and
exposure at default along with their estimate of the
probability of default. Basel III uses three different
measures of capital - common equity Tier 1 capital,
Tier 1 capital and Tier 2 capital. Common Equity
Tier I capital includes items such as common equity
and retained earnings that are available to absorb
losses on a going-concern basis, while Tier 1 capital
includes other perpetual instruments that are
subordinated to the deposits and subordinated debt
of the bank and meet additional criteria. Tier 2
In its concluding remarks, the paper finds that Basel

III casts a dim light over a wide range of possible
scenarios and predicts losses in tail of the
distribution across a wide variety of scenarios. Basel
III also cannot say very much about what may
happen in any particular scenario. In contrast, each
individual stress test casts a very bright light, but
only on one particular scenario. The stress test is
intended to provide a good estimate of what
happens in a particular scenario. Moreover, there is
no reason to expect that any given scenario will be
predictive of the results of a very different stress
scenario. The weaknesses in Basel III can be
mitigated by stress testing because of differences in
the way the two measures are structured and
implemented.
Stress testing can mitigate the incentives created by
Basel III credit risk underestimation for three
reasons. First, stress test errors are unlikely to be
perfectly correlated with Basel III errors. Second
stress tests are less reliant on models run by the
banks, and third stress test scenarios can be designed
to address weaknesses in both the Basel III risk
weightings and supervisors' perception of
estimation error in the stress test models. Stress
testing could mitigate the failure of Basel III to
include an explicit interest rate risk component by
including an interest rate stress scenario in the
analysis and using more granular data on
individual bank's current exposure. Stress testing
can mitigate Basel III's use of possibly overvalued
book capital by forcing banks to estimate losses over
a multiyear period in scenarios in which economic
conditions do not improve enough to make good
embedded credit losses.
In contrast, Basel III provides an unconditional

static measure with the risk adjustment occurring in
the risk weighting of assets (the denominator of the
capital adequacy ratio) at a single point in time
using a process that does not depend upon
projections of the future state of the economy. The
calculation of the Basel III ratios depends on past
performance to estimate the loss distributions
associated with various portfolio positions. The
estimated loss distributions are then used to
calculate the expected losses in the extreme tail of
the distribution. The current portfolio positions
(assets and derivatives) are then summed using
weights derived from the expected losses to calculate
the denominator of the Basel III ratios. In effect,
Basel III derives a generic severely adverse scenario
for each portfolio category from that category's own
(recent) past experience.
capital includes items available to absorb losses

only on a gone-concern (in resolution) basis such as
subordinated debt.
CCIL
next period.
Source: Federal Reserve Bank of Atlanta
49
briefing
WHAT'S NEW
International
Developments
The Governing Council of the ECB cut the interest rates on the main
refinancing operations of the Eurosystem and the marginal lending facility
by 25 bps each to 0.25% and 0.75% respectively, w.e.f November 13, 2013 in
a bid to prevent slowing inflation from taking hold in a still-fragile euro-area
economy. The interest rate on the deposit facility was left unchanged at
0.00%.
Reserve Bank of Australia the cash rate unchanged at 2.5% stating that a
lower currency will be needed to achieve balanced growth. In its quarterly
monetary policy statement, it forecast below-trend growth and rising
unemployment in 2014 as resource investment drops and renewed currency
strength drags on the economy, leaving open the chance of lower interest
rates.
Denmark held its key policy rate unchanged at 0.2%, breaking with a custom
of following the ECB after it unexpectedly lowered its benchmark rate to
rekindle inflation in the euro area.
Federal Reserve Bank of Atlanta President Dennis Lockhart said the central
bank will consider reducing its bond-buying program at next month's policy
meeting.
CCIL
Federal Reserve Chairman Ben S. Bernanke said a process under

development that would allow regulators to take down a failing bank will
help ensure investors discipline weak firms and prevent them from taking
risks without consequence.
50
Federal Reserve Chairman Ben S. Bernanke said the labor market has shown
meaningful improvement since the start of the central bank's bondbuying program and that the benchmark interest rate will probably stay low
long after the purchases end.
Federal Reserve Vice-Chairman Janet Yellen told the Senate Banking
Committee that supporting the recovery is the surest path to returning to a
more normal approach to monetary policy.
As per the minutes of their last meeting, Federal Reserve might reduce their
$85 billion in monthly bond purchases in coming months as the economy
improves.
China's central bank will basically end normal intervention in the
currency market and broaden the yuan's daily trading limit, Governor Zhou
Xiaochuan said, without giving a timeframe.
briefing
WHAT'S NEW
The People's Bank of China said the country does not benefit any more from
increases in its foreign-currency holdings.
Reserve Bank of Australia Governor Glenn Stevens said that while the
central bank has been unconvinced about the effectiveness of trying to drive
down the Aussie, he remains open-minded on currency intervention.
Federal Reserve Bank of Atlanta President Dennis Lockhart said he thinks
the central bank can handle its exit from quantitative easing.
Bank of England Governor Mark Carney took action to restrain the U.K.'s
house-price boom by ending incentives for mortgage lending in a package
aimed at curbing evolving risks to financial stability.
The Swiss National Bank will maintain the cap on the franc as the global
economic recovery proceeds sluggishly, board member Fritz Zurbruegg said.
European Central Bank President Mario Draghi said keeping interest rates
low for an extended period carries risks that policy makers weighed carefully
before they reduced the benchmark rate to a record low.
Acceleration of yuan convertibility and liberalization of interest rates were
among the key reform proposals decided on at the Third Plenum of the
Chinese Communist Party.
Premier Li Keqiang said China needs 7.2% growth to keep unemployment
stable and signaled reluctance to widen the budget deficit or ease monetary
policy to ensure expansion. China's growth has entered a stage of mediumto-high speed, meaning about 7.5% or above 7%, he said.
France's credit rating was cut to AA from AA+ by S&P which said President
Francois Hollande's policies will fail to spur growth and fix public finances.
S&P lowered Netherland's credit rating to AA+ while rewarding Spain for
moves to reform public finances with an improved stable outlook. Real GDP
in the United States increased at an annual rate of 2.8% in the third quarter
of 2013 as per the "advance" estimate released by the Bureau of Economic
Analysis. In the second quarter, real GDP increased 2.5%.
The data released by Eurostat showed that the 17-country Eurozone's GDP
expanded at 0.1% during July-September 2013 compared with the previous
quarter when GDP had grown at 0.3%.
Japan's economy slowed less than expected in July-September quarter to
0.5% vis--vis previous quarter growth of 0.9%.
China released a raft of detailed reform plans promising sweeping changes

to the economy.
CCIL
International
Developments
51
briefing
WHAT'S NEW
International
Developments
China's exports rose 5.6% in October from a year earlier, while imports rose
7.6% leaving a trade surplus of $31.1 billion, the biggest this year.
Japan's trade deficit widened to $10.9 billion in October.
Britain's trade gap widened to GBP 9.72 billion, the most in more than a year
in the third quarter as imports rose to a record, holding back the economic
recovery.
The US consumer-price index declined 0.1% in October, the first decline in
six months.
China's consumer price index rose 3.2% in October from a year earlier.
U.K. inflation dipped to 2.2% in October from 2.7% in September 2013.
Eurozone inflation rose to 0.9% in November from 0.7% in October.
The European Union trimmed its forecast for euro-area growth next year to
1.1% as the economy struggles to gain momentum with the continuing debt
crisis and record unemployment.
The US budget deficit in October 2013 narrowed to $91.6 billion as rising
employment contributed to the strongest October revenue on record.
Indian Economy
As per estimates released by the CSO, quarterly GDP at factor cost at

constant (2004-2005) prices for Q2 of 2013-14 is estimated at `13.69 lakh
crores, as against `13.06 lakh crores in Q2 of 2012-13, showing a growth rate
of 4.82%. The WPI has risen by 6.1% during Q2 of 2013-14 over Q2 of 201213, while the CPI-IW has shown a rise of 10.90% during the period.
CCIL
India registered a fiscal deficit of `45,798 crore during October 2013
52
representing an increase of 47.67% over the fiscal deficit of `31,016 crore in

October 2012. The fiscal deficit during April-October 2013 accounted for
84.4% of the budgeted estimates of `5,42,499 crore for 2013-14.
India's exports grew 13.47% in October 2013 to $27.27 billion from $24.03
billion in October 2012. Imports declined 14.50% to $37.83 billion from
$44.24 billion in October 2012. The trade deficit for April-October 2013-14
was estimated at $90.68 billion which was lower than the deficit of $112.03
billion during April-October 2012-13.
The Index of Industrial Production (IIP) registered a growth of 2.00% in
September 2013 as compared to a negative growth of 0.70% in September
2012. The cumulative growth during April-September 2013-14 was 0.40% as
against a growth of 0.10% during April-September 2012-13.
briefing
WHAT'S NEW
The eight core industries with a combined weight of 37.90% in the Index of
Industrial Production (IIP) contracted 0.60% in October 2013 compared to
7.80% growth in October 2012. Cumulative growth for April-October 2013
was 2.60% as against 6.80% in April-October 2012.
The annual rate of inflation, based on monthly WPI, stood at 7.00%
(Provisional) for the month of October 2013 as compared to 6.46% in
September 2013 and 7.32% during October 2012. The annual rate of
inflation based on final index for August 2013 stood at 6.99% as compared
to 6.10% reported earlier.
Provisional annual inflation rate based on all India general CPI (Combined)
for October 2013 on point to point basis was 10.09% as compared to 9.84%
(final) for September 2013. The corresponding inflation rates (provisional)
for rural and urban areas were 10.11% and 10.20% respectively (were 9.71%
and 9.93% respectively in September).
The year-on-year inflation measured by monthly CPI-IW stood at 11.06%
for October 2013 as compared to 10.70% in September 2013 and 9.60%
during October 2012.
Point to point rate of inflation based on the CPI-AL decreased from 12.78%
to 12.65% in October, 2013 while for CPI-RL increased from 12.44% to
12.48% in October, 2013.
India's holding of US Treasury Securities at the end of September 2013 stood
at $56.80 billion vis--vis $57.0 billion at the end of August 2013.
Gross direct tax collections during April-October 2013-14 was up by 11.58%
at `3,37,907 crore as against `3,02,844 crore in the same period last year. Net
Collection of indirect taxes excise, stood at about `2,69,100 crore during
April-October 2013-14, up 5.3% from the same period last fiscal year.
The total debt of the government increased by 6.7% in the second quarter
ended September 2013 to `45,80,472 crore.
On November 19, 2013 IFC issued the first tranche of US$161 million
under its USD 1 billion Global Rupee Bond Program.
Planning Commission Deputy Chairman Montek Singh Ahluwalia said
that Indian economy will get back on the targeted growth trajectory of 8%
after two years.
According to the PMEAC chairman C Rangarajan, India will see distinctly
better economic growth in the second half of the current fiscal on
improvement in manufacturing (growth is anticipated to touch 3%) and
direct tax collections rose 13.33% to `2,84,339 crore.
CCIL
Indian Economy
53
briefing
WHAT'S NEW
Indian Economy
good monsoon this season.

In the second OECD Economic Outlook India's GDP has been projected to
grow 3.4% in the current financial year, almost same as the 3.3% growth
recorded last year.
Narrowing current account deficit will not be enough to shield India from
pressures tied to Fed tapering, said Fitch Ratings. It added that India's
economy has "not lost much momentum" on the back of "resilient"
agriculture and exports, and predicted economic growth of 4.8% in 2013-14
and 5.8% in 2014-15.
Moody's maintained its negative outlook on India's banking system,
reflecting the negative effects of currency volatility, persistent inflation, and
slowing economic growth.
Fitch said the government may have to shift part of the soaring oil subsidy
bill of the current financial year to the next fiscal.
Moody's Investors Service attributed half of India's slowdown to structural
problems.
Goldman Sachs expects India's GDP to gradually pickup to 5.5% in FY 15,
higher than earlier forecast of 5.4% based on the slight uptick in capital
investment and the normal post-election pickup in growth.
India is exploring local currency trade with Japan and South Korea as it seeks
to cut outflow of dollars needed to finance its current account deficit.
CCIL
S&P warned it may cut India's sovereign rating to below investment grade
should the next government fail to provide a credible plan to reverse the
country's low economic growth.
54
A report on Asia Pacific Economics by Morgan Stanley Research expects

India's exports to grow by 7.2% in 2014 fiscal as against -1% in 2013 on the
back of improvement in growth of developed markets.
Reserve Bank of India: RBI Governor Raghuram Rajan's reassurance to the market clarifying on
(Source:
RBI's interpretation of economic events and the likely direction of policies
http://rbi.org.in)
at times of uncertainty:
o The Current Account Deficit (CAD) for this year is expected at $56 bn, less
than 3% of GDP and $ 32 billion less than last year.
o The lower CAD to be financed and the money raised through new channels
will help break even on capital flows.
briefing
WHAT'S NEW
Reserve Bank of India: o Fears of the return of oil marketing companies are unfounded as the market
(Source:
has unknowingly but smoothly absorbed the demand for dollars generated
http://rbi.org.in)
by their return to the market.
o Fears of a downward pressure on the rupee in case of repayment of dollars by
the OMCs to RBI was a non-issue as the RBI had 3 ways to manage it: i)
OMCs buy in the market if markets are calmer; ii) Rollover of the swaps so
they mature at a calmer time; iii) Settle swaps by making net payments in
rupees and avoid need for them to go to the market.
o Good monsoon, associated pickup in consumption, healthy exports strong
growth in power sector could lead to good IIP numbers.
o Despite high CPI inflation, the decline in core inflation in September is
heartening.
o Reassurance that the RBI is concerned about the weak economy as well as
high inflation. Weak economy, increase in food supply and recent policy
hikes will provide a disinflationary impetus over time.
o RBI will conduct OMO on November 18 for `8000 crore to alleviate the
liquidity tightness.
The aggregate Normal Ways and Means Advances (WMA) limit for the State
Governments inclusive of Union Territory of Puducherry has been increased
by 50% to `15,360 crore with effect from November 11, 2013.
RBI released the framework for setting up of Wholly Owned Subsidiaries

(WOS) by foreign banks in India.
RBI clarified on the taxation matters in the framework for setting up of
wholly owned subsidiaries by foreign banks in India.
RBI further liberalized the procedure relating to payments for
exports/imports.
RBI has allowed unlisted companies incorporated in India to raise capital
abroad, without the requirement of prior or subsequent listing in India,
initially for a period of two years, subject to conditions.
Banks were advised to put in place systems that will enable them to provide
Form 16A to the customers within the time-frame prescribed under the
CCIL
RBI will henceforth make available the money market data on RBI website
around 10.30 a.m. in view of the change in the timings of the Marginal
Standing Facility (MSF) operations.
RBI, in consultation with Government of India, has decided to launch

Inflation Indexed National Savings Securities-Cumulative (IINSS-C) for
retail investors in the second half of December 2013.
55
briefing
WHAT'S NEW
Reserve Bank of India:
Income Tax Rules.
(Source:
Banks were directed to levy SMS alert charges on all customers on actual
http://rbi.org.in)
usage basis.
RBI has included the incremental bank loans to medium manufacturing
enterprises (as defined in the MSMED Act, 2006), extended after November
13, 2013, as priority sector advances.
RBI has released 'Draft Guidelines on Entry of Banks into Insurance
Business Insurance Broking Business' on its website for comments and
feedback.
RBI extended liquidity support to Micro, Small and Medium Enterprises.
RBI shifted the arrangement for reporting of data on issuance of
guarantees/LoUs/LoCs by all AD banks to the online mode.
The Government of India further updated the Harmonised Master List of
Infrastructure sub-sectors.
RBI issued directives on security and risk mitigation measures for card
present transactions.
RBI allowed banks to pay interest on Rupee savings and term deposits at
intervals shorter than quarterly intervals.
RBI has raised the total FDI and FII investment in credit information
companies to 74% from 49%.
CCIL
RBI has kept interest rate ceilings on FCNR (B) deposits for maturity period
of one year to less and interest rate offered by bank on incremental NRE
deposits with maturity of 3 years and above without any ceiling unchanged
till January 31, 2014.
56
RBI notified relaxations regarding overseas foreign currency borrowings by

AD banks.
RBI received $17.5 billion under special concessional window for swapping
foreign currency non-resident bank deposits and foreign currency
borrowings.
RBI has received US$ 22.7 billion under the Forex Swap Window till
November 20, 2013.
All RRBs have to maintain a minimum CRAR of 9% with effect from March
31, 2014.
RBI notified revised rules regarding participation of NBFCs in insurance
sector.
RBI issued directions to NBFCs for migration of post-dated cheques
(PDC)/equated monthly installment (EMI) cheques to electronic clearing
service (Debit).
briefing
WHAT'S NEW
Reserve Bank of India: RBI asked NBFCs to get ready for settlement of dues through Lok Adalat to
(Source:
be held on November 23, 2013.
http://rbi.org.in)
RBI has invited applications for a Self Regulatory Organization (SRO) for
NBFC-MFI.
RBI launched the 23rd round of its Order Books, Inventories and Capacity
Utilisation Survey (OBICUS). The survey is for the reference period JulySeptember 2013.
RBI launched the 64th round of the Industrial Outlook Survey (IOS) for
reference period October-December 2013.
RBI issued Sectoral Deployment of Bank Credit for October 2013.
RBI released the data on ECB/FCCB for September 2013.
RBI released the data on Overseas Direct Investment for October 2013.
RBI released the minutes of the October 23rd, 2013 meeting of the Technical
Advisory Committee on Monetary Policy.
RBI released the statutory Report on Trend and Progress of Banking in India
2012-13.
RBI released its monthly bulletin for November 2013.
RBI released monthly data on India's International Trade in Services for the
month of September 2013.
RBI released the Statistical Tables Relating to Banks in India 2012-13.
RBI signed MoU on Supervisory Cooperation and Exchange of
Supervisory Information with Supervisors in Australia and New Zealand.
CCIL
CCIL Forex Segment has settled 34,418 deals on 29th November 2013, the
highest recorded so far.
CCIL
RBI has cancelled the Primary Dealer authorisation of Royal Bank of

Scotland N.V with effect from December 02, 2013.
Tata Sons Limited has withdrawn its application made on July 1, 2013 for a
new bank licence.
57
Speech
The Five Pillars of RBI's Financial Sector Policies
CCIL
Speaking on the opportunities for growth in India,

Mr. Raghuram Rajan said that the Indian
population is young, India's infrastructure is
inadequate, and too many Indians are poorly
educated, poorly fed, and poorly connected. These
are precisely the reasons for plentiful opportunities
for betterment in the coming years. While some are
of the opinion that India needs to focus on
manufacturing, some others point out the need for
industries such as electronics or computer chips. It
is essential to focus on improving the overall
conditions for growth instead of targeting specific
industries for governmental attention, which risks
bringing back of the Licence Permit Raj.
The measure of success should be achieved by
developing a facilitating, though competitive,
environment that will result in the emergence of the
best solutions. This requires a disciplined focus on
four issues. First, the need to improve the quality of
infrastructure, especially the logistical support and
power that industry and services need. Second, the
youth need education and training for the jobs that
will be created. India can be at the forefront of
providing mass technology-enabled education
laced with appropriate human inputs to the world.
Third, the need for better business regulation that
is appropriate to the objective and that is enforced.
We have strong labour laws in theory that are meant
to protect employees, but in practice we have a very
flexible system with no incentive for firms to invest
in their workers or hold on to them, and no loyalty
towards the firms from workers. This needs to
change if we are to have more skilled
manufacturing jobs. Fourth, the need for a better
financial system, which will finance the needed
infrastructure and the expansion of every producer

ranging from the kirana shop owner to the
industrialist even as it allows households to save
safely with positive real returns, insure themselves
against health emergencies or old age costs, and
borrow at low cost to finance consumption.
Importantly, the financial system should not
require constant subsidies to bail it out.
Focussing on what the Reserve Bank is doing to
improve the financial system he said that they plan
to build the RBI's developmental measures over the
next few quarters on five pillars. First, we are among
the large countries with the highest consumer price
inflation in the world, even though growth is
weaker than we would like it to be. Much of the
inflation is concentrated in food and services.
Inflation comes from demand exceeding supply,
and it can be curtailed only by bringing both in
balance. There is a need to reduce demand without
having serious adverse effects on investment and
supply. Thus there is a need for clarifying and
strengthening the current monetary policy
framework. Second is strengthening banking
structure through new entry, branch expansion,
encouraging new varieties of banks, and moving
foreign banks into better regulated organisational
forms.
Third is broadening and deepening financial
markets and increasing their liquidity and
resilience so that they can help allocate and absorb
the risks entailed in financing India's growth.
Liquid markets will help banks offload risks they
should not bear, such as interest rate or exchange
risk, and it will also help promoters raise equity.
Address by Raghuram G. Rajan at BANCON 2013, Mumbai on November 15, 2013
58
Speech
Further, it will also allow banks to sell assets that

they have no comparative advantage in holding,
such as long term loans to completed infrastructure
projects, which are better held by infrastructure
funds, pension funds, and insurance companies.
The Reserve Bank plans to roll out more
recommendations of the Gandhi Committee
report to improve the liquidity and depth of the GSec market, and then turn to money markets and
corporate debt markets. It also plans to introduce
new variants of interest rate futures and products
like inflation indexed certificates, and work to
improve liquidity in derivative markets.
correspondents to link people up to the formal

financial system. The Dr. Nachiket Mor
Committee is helping with possible models, and at
a more detailed level, committees like the
Sambamurthy Committee have been set up to
advise on how to expand mobile banking in India
through encrypted SMS based funds transfer in any
type of handset. Lastly, there is a need to ensure that
the system recognises financial distress early, and
improves the system's ability to deal with corporate
distress and financial institution distress by
strengthening real and financial restructuring as
well as debt recovery.
Fourth is the need for financial inclusion by

expanding access of financial services to small and
medium enterprises, the unorganised sector, the
poor, and remote and underserved areas of the
country through technology, new business
practices, and new organisational structures. Many
experiments are under way to use technology,
mobile phones, new products such as mobile
wallets, and new entities as business
In conclusion he said that India is going through a

period of great cynicism about what it can do.
Moreover, every policy is greeted with suspicion
and scrutinised for evidence of malfeasance, and
decision making has slowed. Thus, the solution lies
in action that is, and is seen to be, purposeful,
unbiased, and effective, and the Reserve Bank of
India aims to play its part in making this happen.
CCIL
Source: www.rbi.org.in
59
Speech
Ebbing global liquidity and monetary policy interactions

Drawing reference from his earlier speech in which
currencies. It was also seen by plotting average
Jaime Caruana had highlighted the interactions
policy interest rates against those indicated by a
between accommodative monetary policies in
Taylor rule with fairly conventional parameters.
major countries and emerging markets by five
Such rule of thumb suggested that policy rates have
distinct overlapping channels, he said that the
been low since well before the global financial
experience in 2013 has taught about each of the five
crisis. The reason for variation in follow the leader
channels, and how important policy spillovers
were currency appreciation and its potential to
were, are and will be. This evidence strengthens the
damage the traded goods sector in some places and
case for policymakers to take into account these
the threat of capital flows financing unsustainable
interactions when setting their own policy.
and potentially damaging credit extension in
Furthermore, policymakers in small open
others. However, between May - August 2013 the
economies need to take advantage of the temporary
process reversed. The mere prospect of tapering in
lull to undertake prudent measures to make their
bond buying sent the exchange rates of many
economies more robust when the exit really
commodity exporters and emerging markets down,
happens. Proposing a new theme, he said that
risked higher inflation. Thus, some emerging
capital flows have become even less reliable as an
market central banks that had maintained interest
indicator of overall positioning. The development
rate differentials at prudent but often
of hedging markets means that investors can reduce
uncomfortable levels have been able to cut their
their exposure with little outright selling.
policy rates since May, notwithstanding the

pressure on their currencies.
international monetary interactions, which
Second channel is through the integration of global
include: (i) follow-the-leader behaviour in setting
bond markets. In 2013, authorities had succeeded
low short-term policy rates; (ii) diffusion of low
in putting their thumb on the scale in the global
bond yields to local bond markets; (iii) exchange
bond market by making the investors pay away
rate appreciation; (iv) booming dollar credit
about 1% of the expected short term rates over the
growth; and (v) capital inflows.
next 20 years for securing a yield. Investors in
Focusing on the follow-the-leader behavior, he

suggested that central banks tend to set their
domestic policy rates on the low side in the face of
very accommodative monetary policy in the major
sovereign and corporate dollar or euro bonds were

not surprised that these underperformed US
Treasuries or German bunds, respectively. What
came as a surprise to many, perhaps, was the
CCIL
He then discussed about the five channels of
Address by Jaime Caruana in Santiago Chile on 15 November 2013
60
Speech
underperformance of many local government
t h e i r d e b t i n m a j o r c u r re n c i e s . S u c h
bonds. Domestic bonds did offer some
redenomination tends itself to put upward pressure
diversification benefits in economies where
on domestic currencies and creates the possibility
previous prudence in policy rate setting allowed the
of a scramble to hedge if the environment changes.
doubt some merit in the popular identification of

the worst performers as countries that both ran
current account deficits and depended on bond
inflows.
From the borrowing country perspective, dollar

credit in Asia was growing faster than credit
denominated in domestic currency. In Latin
America it was growing about as fast. At the same
time, important changes have occurred that deserve
some attention, in particular the rapid increase in
The third channel works through currency
emerging market corporate bond issuance in
depreciation. Many studies had suggested that
foreign currencies. Bond market borrowing by
emerging market and other advanced economy
emerging market firms has advantages and
c u r re n c i e s a p p re c i a t e d i n re s p o n s e t o
disadvantages from a financial stability point of
announcements of large-scale bond purchases. Yet
view. In contrast to firms borrowing from banks
most of these studies, like those that analysed the
and banks in turn funding themselves with short-
global diffusion of lower bond yields from the
term loans, bond market finance tends to bind
same announcements, examined relatively short
investors and issuers over the medium term. This
windows and left open the question of the
makes sudden reversals of dollar credit less likely.
persistence of any currency appreciation. It was
However, the longer-term funding available in
observed that over a four-year period since mid-
dollars may tempt emerging market firms to run
2008, the US dollar had depreciated just a bit
currency mismatches.
against emerging market currencies.
The last channel includes capital outflows. Central
The fourth channel was dollar credit growth
banks said at different meetings about derivatives
outside the United States. Continued growth in
transactions that allow what might be called virtual
dollar bank credit to borrowers outside the United
selling by non-residents. Investors engaged in such
States was all the more remarkable in view of the
virtual selling through sales of the domestic
retreat of the largest providers of such credit,
currency forward (and perhaps interest rate swaps)
namely European banks. Their deleveraging has
rather than cash selling. Instead of non-resident
constrained the supply of dollar credit to borrowers
investors, including multinationals with local
outside the United States. The argument
operations, liquidating positions, they hedged
mentioned that if domestic currencies carried
them through forward sales of the currency (often
higher yields, if they were expected to appreciate
offshore). Such virtual selling amounts to cross-
and if volatility were priced cheaply, firms (and, in
border risk flows rather than cross-border capital
places, households) were tempted to redenominate
flows alone. This reinforces the point that capital
Without attempting a full analysis, there is no
CCIL
central bank to stand pat, or even to lower rates.
61
Speech
flows, like currency moves, cannot serve as a
effect of accommodative monetary policy in major
summary statistic of the manifold monetary policy
countries in (i) lowering emerging market policy
interactions.
rates; (ii) lowering local currency bond yields; (iii)
Conclusion
propelling capital flows. He further stated that
flows; global bond markets can move in sympathy
policymakers can use the current interval - however
without flows; dollar credit can be funded
long it proves to be - to bolster their resiliency in the
domestically; and non-residents can trade in
face of monetary policy normalization and the
derivatives markets, leaving no trace in capital
inevitable ebbing of global liquidity.
August 2013 can be read as evidence of the previous
CCIL
of corporate liabilities to dollars and euros; and (v)
Policy rates may be set precisely to avoid capital
flows. All in all, the experience of May through
62
appreciating currencies; (iv) inducing the shifting
Source: www.bis.org
MArket Roundup
Market Roundup
Domestic Economy
Macro-economic Overview: Domestic Economy
According to the Central Statistics Office (CSO) provisional estimates, Gross Domestic Product (GDP) for
the second quarter (July - September) of 2013-14 at factor cost (at 2004-05 prices) registered the four-quarter
highest growth at 4.83% (Y/Y) compared to 4.35% in the previous quarter, but stood lower than 5.19% in
2012-13:Q2. The marginal improvement in economic performance was driven mainly by strong growth in
agriculture production (4.63% in 2013-14:Q2 against 1.68% in 2012-13:Q2) and impressive growth in
industrial output (2.35% against 1.27%). But the slowdown in service sector output (5.94% against 7.64%)
reduced the magnitude of recovery of overall GDP growth.
The generous rise in agriculture & allied sector output was mainly on account of better Kharif crops'
production along with strong production of fruits & vegetables, livestock products, forestry and fisheries.
The impressive growth in industrial production was driven primarily by sharp increase in electricity
generation, gas & water supply (7.73% in 2013-14:Q2 against 3.19% in 2012-13:Q2) and noticeable rise in
manufacturing production (1.01% against 0.06%). But mining production is still in contraction trajectory
with contraction rate of 0.41% in the same quarter. However, slowdown in the services sector output was
factored by sharp decline in growth pace of Community, Social and Personal Services (4.24% in 2013-14:Q2
against 8.40% in 2012-13:Q2).
Table M1: Sector-Wise Growth Rates (%)
2012-13
2012-13 : Q3 2012-13 : Q4 2013-14 : Q1 2013-14 : Q2
(PE)
1.91
1.80
1.35
2.72
4.63
Industry
3.49
2.08
2.49
2.66
0.21
2.35
Mining & Quarrying
-0.63
-0.58
-0.69
-3.07
-2.79
-0.41
Manufacturing
2.69
1.05
2.48
2.58
-1.19
1.01
Electricity, Gas & Water Supply
6.51
4.15
4.50
2.78
3.69
7.73
Construction
5.56
4.33
2.87
4.38
2.78
4.29
Services
8.20
7.11
6.65
6.57
6.63
5.94
Trade, Hotels, Transport & Communication
7.03
6.37
6.39
6.21
3.88
4.04
11.67
8.63
7.81
9.10
8.94
9.97
Financing, Insurance, Real Estate

Community Services
6.01
6.57
5.55
4.05
9.42
4.24
GDP at Factor Cost (at 2004-05 Prices)
6.21
4.99
4.71
4.78
4.35
4.83
Source: Central Statistical Office (CSO)
According to the RBI's latest data release on Balance of Payment (BoP), India's current account deficit (CAD) in
the second quarter of 2013-14 contracted sharply by 75.5% (Y/Y) to $5.17 billion compared to $21.13 billion in
2012-13:Q2. The nose-diving drop in CAD comes mainly from joint effect of impressive growth in exports
(11.9% on Y/Y basis and 9.9% on Q/Q basis) and noticeable fall in imports (4.8% on Y/Y basis and 7.9% on
Q/Q basis) in the second quarter of current financial year. The Y/Y growth of 5.5% in invisibles also
contributed significantly in bringing down the CAD to 1.2 percent of the GDP compared to 5.0 percent of GDP
in 2012-13:Q2.
Agriculture, Forestry & Fishing
2011-12
(RE)
3.65
CCIL
Sectors
63
MArket Roundup
The analysis of other components of BoP indicates that Capital Account balance fell sharply to a deficit of
$5.36 billion in the second quarter of 2013-14 against surplus of $20.51 billion in the previous quarter and
$20.75 billion in the corresponding quarter a year ago. The substantial decline in Capital Account was driven
mainly on capital outflows from portfolio investment ($6.60 billion against inflows of $7.72 billion in the
same quarter a year ago) - which left total foreign investment to net inflows of $0.29 billion against net
inflows of $15.88 billion in the same period. The severe deterioration in Capital Account balance brought the
overall BoP to deficit of $10.36 billion (against $0.35 billion in the previous quarter) - which was mainly
financed by foreign exchange reserves.
Table M2: India's Balance of Payment: Second Quarter of 2013-14
Net ($ Billion)
Current Account Balance
July - September April - June July - September Growth Rate Growth Rate
2012 PR
2013 P
2013 P
(%) (Q/Q)
(%) (Y/Y)
-21.13
-21.79
-5.17
-76.27
-75.53
Merchandise
-47.79
-50.48
-33.31
-34.03
-30.31
Invisibles
26.66
28.69
28.14
-1.95
5.52
Capital Account Balance
20.75
20.51
-5.37
-126.20
-125.91
Foreign Investment
15.88
6.27
0.29
-95.41
-98.19
Foreign Direct Investment
8.16
6.49
6.89
6.07
-15.56
Portfolio Investment
7.72
-0.22
-6.60
-185.54
Others
4.87
14.24
-5.66
-139.75
-216.31
Errors & Omissions
0.23
0.93
0.19
-79.58
-16.02
D. Overall Balance (A+B+C)
-0.16
-0.35
-10.35
5.00
4.90
1.20
Current Account Deficit (CAD) as % of GDP
Source: RBI BoP Press Release
As per cyclic trend in the first month of 2013-14:Q3, the central government's revenue recorded a decline on
M/M basis to `67161 crore in October'13, but on Y/Y basis, the government receipts rose at 23.4% due to
impressive growth in both - tax revenue (22.13%) and non-tax revenue (28.95%) receipts. The cumulative
CCIL
revenue receipts during April - October'13 stood at `4,64,123 crore, 12.78% higher than `4,11,547 crore in
64
the corresponding period a year ago - which constitutes 41.34% of BE: `11, 22,799 crore for 2013-14). Both
revenue receipts and non-debt capital receipts also registered significant growth of 12.8% and 11.48%
respectively in the same period.
MArket Roundup
(` Crore)
Table M3: Central Government's Income - Expenditure Details
BE: 2013-14
April - October 2013
% of Actuals to BE
Total Receipts
1122799
464123
41.34%
Revenue Receipts
1056331
456041
43.17%
66468
8082
12.16%
1665297
922009
55.37%
555322
268059
48.27%
Non-Debt Capital Receipts

Total Expenditure
Plan Expenditure
Non-plan Expenditure
1109975
653950
58.92%
Fiscal Deficit
542499
457886
84.40%
Revenue Deficit
379838
353010
92.94%
Primary Deficits
171814
273464
159.16%
Source: Controller General of Accounts (CGA)
The expenditure-profile shows a robust growth of 32.2% (Y/Y) in total central government expenditure to
`1,12,959 crore in October'13 on account of sharp rise in both plan expenditure (43.8%) and non-plan
expenditure (28.1%). However on M/M basis, both categories of expenditure - plan and non-plan stood lower
at `31,943 crore (39.8%) and `81,016 crore (13.0%) respectively in the same month. The cumulative
expenditure of central government during April - October'13 stood at `9,22,009 crore (55.4% of BE:
`16,65,297 crore). Relatively steeper growth in the total expenditure (18.29%) than total receipts (12.78%) led
to sharp rise in fiscal deficit to `4,57,886 crore (84.40% of BE: `5,42,499 crore) in the same period.
The cyclic trend continued in direct tax collection (`31,223 crore) during October'13 with sharp fall on M/M
basis in - both corporate tax collection (82.1%) and personal tax collection (40.5%) to `14,534 crore and
`16,689 crore respectively. But indirect tax collection followed a growth trend at 8.1% (M/M) to `42,072 crore
in the same month. However on Y/Y basis, both direct tax and indirect tax collection rose at 34.81% and
10.62% from `23,161 crore and `38,034 crore in October'12 respectively. The net tax revenue stood at `74,050
crore in October'13. On cumulative basis, net direct tax collection during April - October 2013 grew at 13.7%
to `2,82,724 crore on account of impressive growth in corporate tax (9.85)% and personal tax collection
Items
Corporate Tax
Personal Tax
Net Direct Tax Collection

April October 2013
168262
114462
Growth (%)
9.85%
19.80%
(Amount in ` Crore)
Net Indirect Tax Collection

April Items
Growth (%)
October 2013
Customs Duty
97206
5.92%
Central Excise Duty
74386
-7.03%
Net Direct Tax

282724
13.67% Service Tax
Other Tax (including
5368
7.73% Total Indirect Tax
Wealth Tax & STT)
Source: Press Information Bureau/Ministry of Finance, CGA (www.cga.nic.in)
72537
18.27%
244129
4.72%
CCIL
Table M4 : Direct & Indirect Tax Collection Details
(19.8%). The cumulative net indirect tax collection in the same period rose by 4.72% to `2,44,129 crore.
65
MArket Roundup
Oct-13
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Jan-13
Feb-13
-6000
Dec-12
-3000
Nov-12
Amount (USD Million)
Oct-12
Chart M1: Monthly Trade Deficit
-9000
-12000
-15000
-18000
-21000
-24000
Export kept its growing (Y/Y) trend in tact with higher gravity at 13.5% to $27.27 billion in October'13 from
$24.03 billion in the same month a year ago. However on M/M basis, exports discontinued its 3-month
continual growth trend in a row. On other hand, imports continued to shrink at 14.5% (Y/Y) to $37.83 billion
in same month, but on M/M basis, the imports grew at 9.8% - which lead to higher trade deficit of $10.56
billion in October'13 (against $6.76 billion in the previous month). However on Y/Y basis, the trade deficit
stood almost half of $20.21 billion in October'12. On cumulative basis, the exports grew at 6.34% to $179.38
billion during April - October 2013, while imports rose to $270.06 billion - which was 3.53% lower than
$279.93 billion in the same period a year ago.
Table M5: Trend in Exports and Imports
Year/Month
CCIL
2010-11
66
Export
Growth (%)
(Amt. in USD Million)
Import
Growth (%)
Trade Balance
251136
40.49
369769
28.23
-118633
2011-12
305964
21.83
489320
32.33
-183356
2012-13
300571
-1.76
491487
0.44
-190917
Apr-13
24164
1.68
41952
10.96
-17787
May-13
24506
-1.11
44649
6.99
-20144
Jun-13
23786
-4.56
36035
-0.37
-12249
Jul-13
25834
11.64
38103
-6.20
-12268
Aug-13
26136
12.97
37054
-0.68
-10918
Sep-13
27679
11.15
34440
-18.10
-6760
Oct-13
27271
13.47
37827
-14.50
-10556
Source: Ministry of Commerce / Trade Statistics
WPI inflation rose to an eight-month high of 7.0% (Y/Y) in October'13 (against 6.46% in previous month and
stood lower than 7.32% figure a year ago. The soaring price rise (a 30-month high) in primary articles (14.68%
against 7.81% a year ago) has caused the sharp rise in WPI inflation, though fuel & power inflation (10.33%)
and manufacturing products inflation (2.50%) also contributed to the rise in WPI inflation to some extent.
The WPI inflation for August'13 was revised upward to 6.99% from a provisional figure of 6.10%.
MArket Roundup
Table M6: Indian Inflation Environment: Inflation (Y-o-Y) Rate (%)
CPI Inflation
Rate
WPI Inflation Rate
Type
Items
October'13:
P
September'13:
R
3 Months Ago:
R
6 Months Ago:
R
1 Year Ago:
R
Primary
14.68
13.54
9.68
5.06
7.81
Food Articles
18.19
18.40
12.29
6.08
6.72
Fuel
10.33
10.08
11.36
8.33
11.65
Manufacturing
2.50
2.03
2.60
3.69
5.95
WPI
7.00
6.46
5.85
4.77
7.32
CPI-Rural
10.11
9.71
9.14
9.16
9.90
CPI-Urban
10.20
9.93
10.18
9.73
9.46
CPI-Combined
10.09
9.84
9.64
9.39
9.75
Source: Office of the Economic Advisor & MOSPI (Ministry of Statistics and Programme Implementation
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
The volatility in Index of Industrial 5.00

Production (IIP) growth trend 4.50
continued in the month of 4.00
September'13, with a sharp rise in
industrial production growth to
1.96% against 0.43% in the previous
Revised
Provisional
month and also was significantly
higher than the contraction of 0.73% in September'12. The noticeable improvement in industrial production
was factored mainly by significant rise (3.33%) in mining output after 11-month of continual contraction
CCIL
The retail inflation - measured by CPI-Combined rose above 10% after six months and stood at 10.09%
(provisional) in October'13 against 9.84% (final) in the previous month and 9.75% a year ago. This upsurge in
retail consumer prices comes mainly from price rise in food, beverage and tobacco -FB&T (12.28% against
11.33% a month ago), while other
Chart M2: Monthly WPI Inflation Rate (%)
major sub-groups recorded some
moderation in prices, but failed to 9.00
balance off the impact of rise in 8.50
FB&T prices. The rural and urban 8.00
area CPI inflation also witnessed
7.50
some spikes to 10.11% (against
7.00
9.71%) and 10.20% (against 9.93%)
respectively in the same period - 6.50
indicting upward pressured of 6.00
5.50
supply side constraints.
* P stands for Provisional Inflation Rate; R for Revised Rate for WPI; F for Final Inflation Rate for CPI
67
MArket Roundup
averaged at 3.45% during October'13 - August'13. The other important contributor in better industrial
production was electricity generation - which grew by 12.9% against 7.16% growth in August'13.
Manufacturing also witnessed marginal growth of 0.57% in the same month. In Used-based classification, the
production of capital goods (which indicates investment pattern) declined at intensified pace of 6.84%.
Table M7: International 10-year Yield Movements (% p.a.) (Month-End)
Category
Sep-13
Aug-13
3 Months Ago
6 Months Ago
1 Year Ago
Sectoral
General
1.96
0.43
-1.85
3.52
-0.73
Mining
3.33
-1.05
-4.59
-2.14
2.21
Manufacturing
0.57
-0.17
-1.74
4.33
-1.58
12.89
7.16
0.00
3.53
3.89
Basic Goods
5.42
1.07
-1.85
3.25
2.71
Capital Goods
-6.84
-2.04
-6.55
9.58
-13.28
Intermediate Goods
4.08
3.69
1.31
2.06
1.72
Electricity
Use-Based Classification
Consumer Goods
0.56
-0.92
-1.45
1.81
0.00
Consumer Durables
-10.83
-7.70
-10.12
-4.86
-1.46
Consumer Non-Durables
11.27
4.82
6.17
7.30
1.43
Source: Ministry of Statistics and Programme Implementation (MOSPI)
The performance of eight core industries witnessed sharp reversal in October'13 with overall contraction of
0.64% against impressive growth of 7.98% in September'13 and average of 3.25% during April - September'13.
Many industries registered either contraction or sharp slowdown in their production activities. The
production of Coal, crude oil, natural gas and petroleum products recorded decline at 3.93%, 0.77%, 13.59%
and 4.78% respectively in October'13, while other four industries - Fertilizers, Steel, Cement and electricity
generation registered slowdown at 4.12% (against 5.26% a month ago), 3.51% (against 6.63%), 0.96%
(11.52%) and 1.33% (12.61%) respectively in the same period.
CCIL
Global Economic Development and Prospects
68
After five years of turbulence, in which businesses have faced the near-collapse of the financial system, a
global recession and the euro zone's debt crisis, the world economy seems to be moving onto a firmer footing
in the second half of 2013. Though direct/indirect effects of these events are still being felt - from austerity in
Euro area to currency jitters in emerging market economies, the economic outlook is becoming more settled reflected from the steadier upswing in the peaks and troughs of the past few years. In 2014, the largest rich
economies - the US, the Euro zone and Japan are expected to grow all together for the first time in the last four
years indicating better prospects of global recovery.
MArket Roundup
Market Overview
Table M8: GDP Growth (on Quarter--on- Quarter basis) Rate (%)
Country
2012:Q2
2012:Q3
2012:Q4
2013:Q1:R
2013:Q2:R
2013:Q3:P/R
US
1.20
2.80
0.10
1.10
2.50
2.80
EURO 16
-0.20
-0.10
-0.60
-0.30
0.30
0.10
Japan
-0.20
-0.90
0.30
1.00
0.60
0.50 : R
UK
-0.50
0.70
-0.20
0.30
0.70
0.80
Australia
0.50
0.80
0.70
0.60
0.60
China (On Y-o-Y basis)
7.60
7.40
7.90
7.70
7.50
7.80
Source: National Central Banks
The growth projection for advanced economies improved in the third quarter. The US economy is projected
to grow at 2.8% (Q/Q) in the third quarter of 2013, up from 2.5% in the second quarter. The UK economy is
also expected to pick up at 0.80 percent in the same quarter, up from 0.7% in the second quarter. The Chinese
economy registered a sound recovery at 7.8% (Y/Y) against 7.5% in the same period. However the growth pace
of Euro area economy and Japan has been projected with some slowdown to 0.10% and 0.50% for the third
quarter respectively.
Except Japan, the majority of advanced economies experienced moderation in consumer price inflation in
September'13, a fourth third month in a row since July'13. The US CPI inflation moderated to 1.0% from
1.18% in the previous month, while in UK it declined significantly to 2.20% (against 2.67%) in the same
period. The Euro area CPI eased to 0.70% from 1.10% in the same period. However, Japanese CPI rose to
1.10% (against 1.00%) in the same period. The emerging economies except Brazil registered significant rise in
October'13. Chinese CPI rose to 3.20% (against 3.10%) and Russian CPI went up to 6.30% (against 6.10%),
but Brazilian CPI moderated fractionally to 5.84% (against 5.86%) in the same period.
Table M9: International 10-year Yield Movements (% p.a.) (Month-End)
Oct-13
3 Months Ago
6 Months Ago
1 Year Ago
US
2.74
2.55
2.77
2.13
1.62
UK
2.77
2.62
2.77
2.00
1.76
Japan
0.61
0.60
0.72
0.86
0.72
Germany
1.69
1.67
1.86
1.51
1.37
Australia
4.22
4.02
3.91
3.36
3.17
Source: Bloomberg
Treasury yields across most of advanced economies closed up at end-November 2013. However, on Y/Y basis,
treasury yields also hardened for all major advanced economies except for Japan - which is eased by 11 bps
from 0.72%, while the US yield stood 112 bps higher than 1.62% in November'13.
Standard & Poor's removed one of the euro zone's few remaining AAA credit ratings and cut the Netherlands
to AA+, while rewarding Spain for moves to reform public finances with an improved stable outlook. With
this change, only three countries - Germany, Luxembourg, and Finland in the currency bloc are left with the
top credit rating. However, both Moody's and Fitch still rate the Netherlands as AAA.
Nov-13
CCIL
Country
69
MArket Roundup
Market Overview
Money Market Review
Easy liquidity conditions as compared to the previous months resulted in decline in short term rates by close
to 50 bps. Average rates which were in double digit for more than a month since mid-August, fell to 8.50%
during November 2013. Weighted average rates in the Call and the Repo markets fell by over half a percentage
point from 9.03% and 9.07% in October to 8.50% and 8.56% respectively. CBLO rates, too, eased by 46 bps
from 8.88% to 8.42% m-o-m. Except during the first three trading days of the month and reporting Fridays
when money market rates were close to 7.80%, weighted average rates remained range bound between 8.00%
and 8.75%.
As far as trading volumes are concerned, only the Call market witnessed m-o-m growth of 11% with the market
share climbing from 14% to 17%. The other two segments, namely Repo and CBLO, observed m-o-m volume
decrease of 17% and 11% respectively.
The ensuing tables give the comparative weighted average rates over a period of time and the comparative
statistics of volume and rates across the different sub-groups of the money market.
TABLE M10: Comparative Weighted Average Money Market Rates (%)
Nov-13
Oct-13
3 Months ago
6 Months ago
Year ago
CALL
8.50
9.03
9.93
7.29
8.04
REPO
8.56
9.07
9.93
7.28
7.99
CBLO
8.42
8.88
9.77
7.10
7.94
CCIL
Table M11: Comparative Money Market Volumes and Rates
70
Gross
Daily Average
Std
Minimum
Maximum
Market Share
Volumes (` Cr)
Volumes (` Cr)
Dev
Rate (%)
Rate (%)
(%)
Nov-13
Oct-13
CALL
351,849.26
317,433.39 18,518.38 15,115.88
0.33
0.25
7.62
8.67
8.75
9.55
16.81
13.69
REPO
539,334.59
651,575.42 28,386.03 31,027.40
0.29
0.27
7.79
8.63
8.75
9.63
25.76
28.10
1,202,388.75 1,350,064.00 63,283.62 64,288.76
0.47
0.51
6.99
7.23
8.75
9.50
57.43
58.22
CBLO
Nov-13
Oct-13
Nov-13 Oct-13 Nov-13 Oct-13 Nov-13 Oct-13 Nov-13 Oct-13
Liquidity Adjustment Facility

Operationalization of the term repo upto 0.50% of
NDTL of the banking system, reduction in MSF
rate and conduct of OMOs had impact on the
liquidity available with the banks during
November 2013. Total as well as the average
volumes absorbed by the RBI via LAF Reverse Repo
window leapt sharply by 318% and 362%
respectively m-o-m. Total and average volumes
which were `3,850 crore and `183 crore respectively

during October 2013, shot up to reach `16,079
crore and `846 crore during November.
On the other hand, total amount lent by the RBI to
banks through LAF Repo auctions declined by 13%
from `8,45,568 crore to `7,37,348 crore. The
average amount, too, fell marginally to `38,808
crore - decline of 4%.
MArket Roundup
Market Overview
Banks' average borrowing through MSF continued
highest since 2011), 18 SDLs for `14,734.88 crore
to slide from the peak of `69,517 crore in
and treasury bills worth `71,283.00 crore during

November 2013. RBI purchased 4 securities under
September 2013 to `37,107 crore in October 2013

and further down to `11,923 crore during the
month under consideration.
Government Securities Market
Primary Market
RBI auctioned 21 government securities for
`74,000 crore (includes new 10-year benchmark
OMOs for `6,156.74 crore on November 18. There

wasn't any auction of short term treasury bills
called CMBs during the month under review.
The following tables provide the details of the
auctions of government securities, OMOs, SDLs
and treasure bills along with its average cut-off
yields over a period of time.
security for `7,000 crore with the coupon of 8.83% -
95.27
8.8774
0.00
2,000.00
101.77
8.9925
0.00
8.83% G.S. 2041
2,000.00
97.17
9.1092
0.00
7.28% G.S. 2019
4,000.00
92.84
8.9400
0.00
08-Nov-13
7.16% G.S. 2023
7,000.00
88.76
8.9368
0.00
08-Nov-13
8.32% G.S. 2032
2,000.00
91.05
9.3378
0.00
08-Nov-13
8.30% G.S. 2042
2,000.00
89.67
9.3351
0.00
14-Nov-13
8.12% G.S. 2020
4,000.00
95.46
9.0008
460.50
14-Nov-13
8.28% G.S. 2027
7,000.00
93.67
9.0904
0.00
14-Nov-13
9.20% G.S. 2030
2,000.00
100.26
9.1671
0.00
14-Nov-13
8.83% G.S. 2041
2,000.00
95.43
9.2894
0.00
22-Nov-13
7.28% G.S. 2019
3,000.00
92.97
8.9190
0.00
22-Nov-13
8.83% G.S. 2023
7,000.00
100.00
8.8300
0.00
22-Nov-13
8.32% G.S. 2032
2,000.00
91.87
9.2391
0.00
22-Nov-13
8.30% G.S. 2042
3,000.00
90.29
9.2679
0.00
26-Nov-13
1.44% IIB 2023
1,000.00
82.50
3.6301
0.00
29-Nov-13
8.12% G.S. 2020
3,000.00
96.25
8.8476
0.00
29-Nov-13
8.24% G.S. 2027
6,000.00
93.73
9.0609
0.00
29-Nov-13
9.20% G.S. 2030
2,000.00
100.92
9.0895
0.00
29-Nov-13
8.83% G.S. 2041
3,000.00
96.39
9.1903
0.00
8.12% G.S. 2020
Cut-off Price
(`)
96.76
01-Nov-13
8.28% G.S. 2027
6,000.00
01-Nov-13
9.20% G.S. 2030
01-Nov-13
08-Nov-13
Yield (%)
CCIL
8.7396
Devolvement on
PDs (` Crore)
0.00
Amount
(` Crore)
4,000.00
Paper
Table M12: Dated G-Sec Auction/Issue

Date of Issue/
Auction
01-Nov-13
71
MArket Roundup
Market Overview
TABLE M13: DETAILS OF SDL AUCTIONS/ISSUE
Date of Issue/
Auction
Amount
(` Crore)
Paper
Cut-off Price
(`)
Yield
(%)
Undersubscription
05-Nov-13
9.30% Madhya Pradesh SDL 2023
500.00
9.30
0.00
05-Nov-13
9.32% Kerala SDL 2023
500.00
9.32
0.00
05-Nov-13
9.33% Rajasthan SDL 2023
500.00
9.33
0.00
05-Nov-13
9.34% Punjab SDL 2023
600.00
9.34
0.00
05-Nov-13
9.35% Meghalaya SDL 2023
100.00
9.35
0.00
05-Nov-13
9.36% Maharashtra SDL 2023
1,500.00
9.36
0.00
05-Nov-13
9.37% Tamil Nadu SDL 2023
1,250.00
9.37
0.00
05-Nov-13
9.40% Uttar Pradesh SDL 2023
750.00
9.40
0.00
05-Nov-13
9.42% West Bengal SDL 2023
1,500.00
9.42
0.00
19-Nov-13
750.00
9.37
0.00
19-Nov-13
9.39% Andhra Pradesh SDL 2023
1,004.88
9.39
745.12
19-Nov-13
9.39% Gujarat SDL 2023
1,000.00
9.39
0.00
19-Nov-13
1,500.00
9.39
0.00
19-Nov-13
1,500.00
9.39
0.00
19-Nov-13
9.40% Goa SDL 2023
150.00
9.40
0.00
19-Nov-13
9.40% Nagaland SDL 2023
130.00
9.40
0.00
19-Nov-13
500.00
9.40
0.00
19-Nov-13
9.42% West Bengal SDL 2023
1,000.00
9.42
0.00
TABLE M14: DETAILS OF OMOs AUCTIONS
CCIL
Date of Repurchase
72
Amount Accepted (` Crore)
Paper
Cut-off Price (`)
Yield (%)
18-Nov-13
7.17% G.S. 2015
3,732.98
98.08
8.4963
18-Nov-13
7.59% G.S. 2016
1,000.60
97.93
8.5573
18-Nov-13
7.83% G.S. 2018
382.05
97.10
8.6332
18-Nov-13
8.20% G.S. 2025
1,041.11
93.16
9.1552
TABLE M15: DETAILS OF T-BILLS AUCTIONS
91 day T-Bill
Date
Amt
(` Cr)
MSS
(` Cr)
Price
(`)
182 day T-Bill

YTM
(%)
Amt
(` Cr)
MSS
(` Cr)
364 day T-Bill
Price
(`)
Amt
(` Cr)
YTM
(%)
MSS
(` Cr)
Price
(`)
YTM
(%)
06-Nov-13
9,510
0.00
97.91
8.5619
6,000
0.00
95.81
8.7705
13-Nov-13
8,806
0.00
97.81
8.9807
4,901
0.00
91.77
8.9927
20-Nov-13
12,806
0.00
97.82
8.9388
6,000
0.00
95.65
9.1206
27-Nov-13
17,260
0.00
97.82
8.9388
6,000
0.00
91.82
8.9332
48382.00
0.00
12000.00
0.00
10901.00
0.00
Total
MArket Roundup
Market Overview
TABLE M16: Average T-Bills Cut-Off Yields (%)
3 Months ago
6 Months ago
91-day T-Bill
8.8551
8.9391
11.3532
182-day T-Bill
8.9456
8.7269
11.5051
7.3924
8.1606
364-day T-Bill
8.9630
8.7355
9.9113
7.2528
8.1069
Secondary Market
Secondary market for the government securities
witnessed down trend in the trading activity with
number of trades falling by 20% whereas trading
volume by 19%. In absolute terms, number of
trades, during November, stood at 50,819 with the
volume at `5,05,637 crore.
The same was the case with the settlement numbers.
CCIL settled total volume of `4,99,569 in a month 20% lower than the previous month's settlement
volume of `6,27,706 crore.
During November, total trades transacted in the
When Issued market jumped to 195 having the
total value of `1,605 crore. Out of which, 10 trades
of 8.12% G.S. 2020 for `50 crore, 58 trades worth
`395 crore of a new 10-year benchmark 8.83% G.S.
2023, 92 trades of 8.24% G.S. 2027 for `965

crore and 35 trades worth `195 crore of 8.28% G.S.
2027 were transacted on the said platform.
Yield Movement
10-year G-Sec yields hardened by 30-35 bps during
the month with average yield standing at 8.89%. It
fluctuated between 8.66% and 9.09% during the
7.3417
Year ago
8.1753
month under consideration. First three weeks of

the month witnessed benchmark yields remaining
at an elevated level (around 9% after mid-August)
mainly because of the domestic factors like selling
of bonds by FIIs, absence of OMO announcement,
higher inflation along with the external
data/statement such as warning by Standard &
Poor's to downgrade the country's sovereign rating
if the next government fails to provide a credible
plan to revive growth and stronger-than-expected
US economic growth giving rise to anticipation of
early tapering of QE3 measures.
Towards the end of the month, nonetheless, yields
settled near 8.70% as market awaited key GDP
figures for the Q2 of FY13-14 and fiscal deficit data
for the month of October. Surprise release of
India's BoP data for Q2 of FY13-14, one month
prior to the scheduled publication, showing sharp
contraction in the CAD as compared to the Q1 of
FY 13-14 as well as corresponding quarter previous
year boosted the market sentiments.
The yields of various tenors prevailing on the last
working day of the month and the spread analysis
of different tenors over a period of time are
provided in the following tables.
Oct-13
CCIL
Nov-13
73
MArket Roundup
Market Overview
TABLE M17: YIELD MOVEMENTS (%)*
Tenor
Nov-13
Oct-13
3 Months ago
6 Months ago
Year ago
O/N
7.7374
8.7370
10.3903
7.2662
8.0868
3 month
8.9283
8.4709
11.4573
7.4129
8.1230
6 month
8.7988
8.4522
11.0694
7.4062
8.1592
1 year
8.6341
8.3892
10.7186
7.2671
8.2316
2 year
8.4429
8.4004
10.1666
7.3763
8.1592
5 year
8.6566
8.5344
9.2728
7.2504
8.1696
10 year
8.7239
8.5504
8.7416
7.1104
8.1686
* on the last working day of the month

TABLE M18: SPREAD ANALYSIS
Period
G-Sec Spread (bps)

Nov-13
Oct-13
3 Months
15
-145
-2
-6
1 - 10 Years
29
37
-173
5 - 10 Years
27
22
-28
10 - 30 Years
24
25
32
23
The Indian currency started off the month on a

weaker note following speculation that oil
marketing companies have been advised to buy a
part of their US dollar needs from the market and
possible end of cheap money from the US Fed
following strong US jobs data. Rupee depreciated
by 2.83% (`1.73) between 1-13 November from
CCIL
1 Year
1 - 5 Years
Foreign Exchange Market
74
6 Months
`61.90 per dollar to `63.65 per dollar. RBI

governor Raghuram Rajan's confidence that the
country would have adequate foreign exchange
resources to finance the CAD and his assurance
that dollar repayments by oil marketing companies
to the central bank could be rolled over saw the
rupee recover smartly. News from the international
markets like statement by Yellen of the FRB on
continuation of the monetary stimulus in the face

of labour market performing far short of their
potential and China's ambitious economic reforms
agenda also helped the rupee to appreciate to
`62.23 per dollar by November 19.
After weakening to `63.02 a dollar till November
22, rupee recovered to `62.39 at the end of the
month on optimism of a smaller CAD, higher FII
purchase of equities as well as Iran's landmark
agreement with western nations to halt nuclear
enrichment for six months in exchange for the
lifting of some sanctions.
The following tables give analysis of rupee
movement against major currencies and the
exchange rate prevailing on the last working day of
the month over a period of time.
MArket Roundup
Market Overview
TABLE M19: EXCHANGE RATE MOVEMENT
` / Euro
` / Pound
` / 100 yen
` / Dollar
Movement (%)
-1.31
-2.89
3.54
-0.79
Average Rate
84.53
100.88
62.63
62.63
Stdev
0.53
0.91
0.99
0.53
Max
85.55
102.06
63.97
63.65
Min
83.42
98.66
60.97
61.79
TABLE M20: EXCHANGE RATE MOVEMENT

Exchange Rate
` / Euro
Nov-13
Oct-13
3 Months ago
6 Months ago
Year ago
84.98
84.12
88.16
73.68
71.47
` / Pound
102.06
98.29
103.34
86.01
88.38
` / 100 yen
60.97
62.44
67.83
56.03
67.20
` / Dollar
62.39
61.41
66.57
56.50
55.20
The movement of 1-month, 3-months and 6-months forward premia over a period of time is exhibited in the
next table.
TABLE M21: MOVEMENT OF FORWARD PREMIA OVER A PERIOD OF TIME (MONTHLY AVERAGE)
Nov-13
Oct-13
3 Months ago
6 Months ago
Year ago
1-month
8.83
9.13
9.75
6.82
6.69
3-month
8.80
8.88
9.36
6.67
6.36
6-month
8.58
8.42
8.60
6.36
6.14
FII activity in the Indian markets remained modest during the month under review. They were net buyers
of equities worth $1.30 billion - a decline of $1.25 billion (49%) as against the previous month. On the
contrary, though they remained net sellers of debt for the sixth consecutive month - the amount of bond
selling reduced by $1.24 billion. The total Indian debt net sold by FIIs stood at $0.96 billion in a month vis-vis $2.20 billion during the previous month. Taking both the markets into an account, they were net
TABLE M22: MOVEMENT OF FII FLOWS

Quarter
Net Investment in Equity
Net Investment in Debt
Amount USD Mn.

Total
2008-09
-11826.40
470.10
-11356.30
2009-10
22780.66
7470.89
30251.55
2010-11
24294.73
7931.30
32226.03
2011-12
9011.66
8451.76
17463.42
2012-13
25832.61
5214.43
31047.04
Q1 2013-14
-1852.15
-5683.48
-7535.63
Q2 2013-14
144.71
-4475.89
-4331.18
Oct-13
2553.40
-2196.90
356.50
Nov-13
1300.71
-957.49
343.22
CCIL
information regarding FII flows is provided in the following table.
buyers of $0.34 billion - marginally lower (-4%) than the previous month's $0.36 billion. The relevant
75
MArket Roundup
Market Overview
Reserve Bank of India said that the concessional swap facility will not be extended beyond November 30,
putting all speculation to rest, but allowed some breathing space for banks currently busy with negotiating with
global lenders for taking overseas loans. The central bank said it will allow banks to get the benefit if they get
firm commitment from global financial institutions on or before November 30, 2013. RBI had in September
allowed banks to borrow up to 100% of their Tier-I capital from overseas markets and swap dollar with it for
rupees. The measures were aimed at attracting dollar inflows and arrest the rupee's depreciation. It offered one
percentage point lower swap rate than the market rate till November 30. As time was running out, RBI observed
that banks currently in the process of negotiation may not be in a position to draw the loan even after getting a
sanction and deliver it for swapping before the deadline. In such cases, a bank will be allowed to enter into a
forward-forward swap. In its first leg, the bank will sell forward the contracted amount of foreign currency
corresponding to the loan amount for delivery up to December 31, 2013. However, if the bank is not in a
position to deliver the contracted amount of foreign currency on the contracted date, it will have to pay the
difference between the concessional swap rate contracted and the market swap rate plus one hundred basis
points.
As per the figures released by the RBI, $34 billion has been mobilized from special concessional dollar swap
windows opened in September for deposits by non-resident Indians and overseas foreign currency borrowings
by banks.
CCIL
The RBI extended the stipulated date for relaxed norms on FCNR (B) deposits till January 31, 2014. In case of
non-resident external (NRE) deposits with maturities of three years and above, the central bank said banks will
be allowed to offer interest rates higher than those for domestic deposits. These deposits will continue to be
exempt from statutory liquidity ratio (SLR) and cash reserve ratio (CRR) requirements. The special window
allows banks to swap fresh FCNR (B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate
of 3.5% per annum. Similarly, for foreign currency non-resident (FCNR) (B) deposits, where RBI had raised the
ceiling on deposits with maturities between three and five years to 400 basis points over Libor from the earlier
ceiling of 300 bps over Libor, the new deadline will now be applicable.
76
Foreign direct investment (FDI) in the country declined by about 38%, year-on-year, to $2.91 billion in
September. In September 2012, the country had attracted foreign investment worth $4.67 billion. During the
April-September period of 2013-14 fiscal, FDI has thus dipped by 11% to $11.37 billion, from $12.84 billion in
the first half of 2012-13. Decline in FDI in sectors like services, telecom and metallurgical industries were
responsible for the fall in total FDI inflows. From April-September this fiscal, FDI in services, telecom and
metallurgical industries declined to $1.32 billion, $32 million and $240 million, respectively. In the first six
months of last fiscal, services had attracted $3.04 billion, telecom $43 million and metallurgical industries $685
million.
Indias foreign exchange reserves inched closer to the $300 billion mark. It surged to their highest level to over
six-month high as strong US dollar inflows via the Reserve Bank of India's concessional swap facilities added
$10 billion to reserves in a single month. Reserves have been depleting since May when the rupee started sliding
due to fears of a tightening in global liquidity conditions, forcing the RBI to intervene by selling dollars in the
market and also providing foreign exchange directly to oil importers. Foreign exchange reserves reached $291.30
billion during the week ended November 29 via-a-via $281.29 billion during the week ended November 01,
clocking a growth of 4%. The entire accretion was due to the rise in foreign currency assets which was $263.74
billion (November 29) against $253.61 billion (November 01).
MArket Roundup
Market Overview
CHART M3: FOREIGN EXCHANGE RESERVES
325,000
USD Million
300,000
275,000
250,000
225,000
200,000
175,000
Ma
y
Au -07
g -0
No 7
v-0
Feb 7
Ma 08
y-0
Au 8
g
No -08
vFeb 08
Ma 09
y-0
Au 9
g
No -09
vFeb 09
Ma 10
y-1
Au 0
g
No -10
v-1
Feb 0
Ma -11
y
Au -11
g -1
No 1
v-1
Feb 1
Ma -12
y
Au -12
g -1
No 2
vFeb 12
Ma 13
y-1
Au 3
g
No -13
v-1
3
150,000
USD Million
19,500
14,500
9,500
4,500
-500
-5,500
-10,500
-15,500
-20,500
-25,500
-30,500
-35,500
-40,500
Change in Forex Reserves
Forex Reserves
Banking Sector
The non-food credit of scheduled commercial banks grew at a moderated pace of 15.92% year-on-year for the
fortnight ended November 15. According to the data, credit grew to `55,48,130 crore compared to `47,86,330
crore in the corresponding period last year. Meanwhile, deposits grew at 15.28%. Total deposits grew to
`73,89,750 crore compared to `64,10,030 crore in the same period last year.
TABLE M23: TRENDS IN SCHEDULED COMMERCIAL BANKS' BUSINESS (` Cr.)
Oct-13
3 Months ago
8949240
8769700
6 Months ago
8519850
Year ago
7784590
Aggregate Deposits
7389750
7305820
7103690
6874300
6410030
Non-food Credit
5548130
5522380
5400640
5210260
4786330
Investment in G-Secs
2205750
2179890
2146710
2045030
1971190
TABLE M24: KEY BANKING RATES AND RATIOS (%)

Nov-13
Oct-13
Credit-Deposit Ratio
76.46
76.86
Investment-Deposit Ratio
29.88
29.87
10.00 - 10.25
9.80 - 10.25
8.00 - 9.05
8.00 - 9.05
4.00
4.00
Base Rate
Term Deposit Rate >1 Year
Savings Deposit Rate
9074140
CCIL
Nov-13
Money Stock
77
Key Macroeconomic Indicators

TABLE 1 : DOMESTIC INDICATORS
Sr.
No.
2
3
National Income
Gross Domestic Product at market price (at
2004-05 prices)
Fiscal Deficit
Industry
o
Item
General Index of Industrial Production
2000-01
Unit/Base
1990-91
` Crore
692871 (1)
1870387
` Crore
44632.00
118816.00
2004-05=100
212.60*
162.60
2011-12
2010-11
2012-13
(Latest
available
figures)
2013-14
(Latest
available
figures)
2006-07
2007-08
2008-09
2009-10
3117372
(9.60%)
142793.00
3402716
(9.00%)
94283.00
4416350
(6.70%)
330114.00
4790847 5296108
(9.30%)
(8.60%)
412307.00 369043.00
5631379
(6.20%)
509731.00
5813664
(5.00%)$
489890
1430067
(4.80%)$
457886
284.50
(12.90%)
297.80
(3.90%)
297.90
(-2.30%)
401.20
(7.30%)
186.40
(-3.50%)
192.30
(2.50%)
166.30
(2.00%)
347.30
(13.50%)
Change
over
Previous
Month
45798
0.90
Money Supply, Banking & Interest Rates

M3
` Crore
265828
1313220
Aggregate Deposits
` Crore
192541
962618
Bank Credit
` Crore
116301
511434
7
8
9
10
11
12
13
S C Banks Investment in Govt. Securities

Credit - Deposit Ratio
Bank Rate
Cash Reserve Ratio
Repo Rate
Inter-bank call money rate (Mumbai)
Base Rate
Inflation
Wholesale Prices (Monthly)
` Crore
Per cent
Per cent
Per cent
Per cent
Per cent
Per cent
49998
340035
60.40
53.39
7.00
10.00
8.00
15.00
4.00 - 70.00 4.00 - 19.00
-- 11.00 -12.00
9074140
8359280
7344070
5579567 6491756
4655831
3876926
3295644
(13.60%)
(8.30%)
(13.00%)
(14.90%) (16.00%)
(16.20%)
(17.10%)
(20.8%)
7389750
6751420
5903660
4486573 5204703
3732501
3075224
2594259
(14.30%)
(9.50%)
(13.40%)
(14.80%) (15.80%)
(16.80%)
(17.90%)
(23.0%)
4611630
5262830
3240399 3938659
5649910
1923192
2690513
2272603
(17.00%)
(12.60%) (21.40%)
(13.90%)
(14.10%)
(7.40%)
(27.6%)
(17.80%)
966516
1166237
771060
1375704 1495467
2205750
1733700
2003460
73.90
74.13
72.08
75.68
70.97
76.46
78.11
77.95
6.00
6.00
6.00
6.00
6.00
8.75
9.50
8.50
7.50
6.00
5.00
6.00
5.75
4.00
4.75
4.00
7.75
7.75
5.00
6.75
5.00
7.75
8.50
7.50
6.00 - 80.00
2.50 - 9.70 2.00 - 5.05 1.00 - 4.10 3.71 - 9.01 5.88 - 13.14 7.34 - 13.69 7.16 - 10.53
12.25 - 12.50 12.25 - 12.75 11.50 -12.50 11.00 - 12.00 8.25 - 9.50 10.00 - 10.75 9.70 - 10.25 10.00 - 10.25
124900
83930
34980
25860
14
208.10
210.00
(5.74%)
320.10
223.60
(6.68%)
341.00
227.30
(0.31%)
320.90
250.80
(9.90%)
361.80
148.00
(8.98%)
158.20
15
Consumer Price Index - New
2010=100
16
Consumer Prices-Industrial Workers

Balance of Trade****
2001=100
193.00
444.00
127.00
137.00
148.00
170.00
185.00
159.80
(6.89%)
174.00
115.50
(8.96%)
201.00
17
Value of Imports
US$ Million
24073
50536
18
Value of Exports
US$ Million
18145
44560
19
Balance of Trade
US$ Million
-5927
-5976
181368
(29.33%)
124629
(23.88%)
-56739
235911
(27.01%)
155512
(23.02%)
-80398
287759
(14.30%)
168704
(3.40%)
-119055
350695
278681
(-8.20%) (21.61%)
245868
176574
(-4.70%) (37.55%)
-102106 -104826.68
488640
(32.15%)
303719
(20.94%)
-184921.69
a. All Commodities
2004-05=100
182.70***
155.70
b. Fuel, power, light and lubricants
2004-05=100
175.80***
170.60
(5.96%)
195.90
127.50
(10.39%)
224.00
180.30
(7.00%)
209.40
137.50
(10.09%)
241.00
491487.22
(0.44%)
300570.58
(-1.76%)
-190916.64
270058.66
(-3.80%)
179376.37
(6.32%)
-90682.29
0.60
1.90
1.30
3.00
37827
27271
-10556
Key Macroeconomic
Indicators
78
CCIL
TABLE 1 : DOMESTIC INDICATORS

Sr.
No.
Item
Unit/Base
1990-91
2000-01
2006-07
2007-08
2008-09
2009-10
254685.00 282037.00
2010-11
2011-12
2012-13
(Latest
available
figures)
2013-14
(Latest
available
figures)
260068.70
259725.90
258664.70
4161.30
27023.10
26292.30
21227.30
-538.10
Change
over
Previous
Month
Foreign Exchange Inflows/Outflows & Exchange Rate

20
Foreign Exchange Reserves****

a. Foreign Currency Assets
US$ Million
2236.00
39554.00
191924.00
294649.00
241597.00
b. Gold
US$ Million
3496.00
2725.00
6784.00
9558.00
9746.00
c. SDRs
17920.00
23790.00
US$ Million
102.00
2.00
2.00
18.00
1.00
5006.00
4671.00
4469.30
4327.60
4420.70
-48.70
21
Net FII Investment
US$ Million
--
399.00
6708.00
16039.80
-11356.30
30251.55
32226.03
17463.42
31047.06
-3999.09
343.22
22
Cumulative Net Investment+
US$ Million
--
13416.00
51965.70
68005.40
56649.30
89332.60 121558.70
140481.70
171528.69
167529.61
343.20
227687
188205
306550
600409
558000
464000
74000.00
Central Government Borrowings (Dated Securities and 364 day T-bills)

23
Government Borrowings****
Gross
` Crore
--
115183
Net
` Crore
--
73787
24
Outstandings (Dated Securities)
25
CCIL Settlement Statistics****

a. Securities (F.V.)
479482
146574
106895
230018
313010
323661
473952
467384
389265
74000.00
` Crore
1181604
1434086
1706083
2033452
2349966
2782985
3244536
3633801
74000.00
` Crore
3578037**
5602602**
6254519
8986719
6970236
7252080
11994797
11711154
-18.74%
US$ Million
--
--
1776981 **
3133664**
3758904
2988971
4191037
4642573
4830933
3147760
-11.06%
c. CBLO (F.V.)
` Crore
--
--
4732271 **
8110828**
8824784
15541378
12259745
11155428
12028040
12065130
-9.62%
Gilts Turnover Ratio#
Per cent
--
--
0.40^
0.69^
0.94^
0.69^
0.71^
0.72^
1.92^
1.34^
b. Forex
26
459497
79
CCIL
^ Turnover Ratio as on November 29, 2013

(1) At 1993-94 prices
$: GDP for Jul - Sep (Q2) of 2013-14. GDP for Jul-Sep (Q2) of 2012-13: `13,53,630 Crore - (5.2%).
: Excluding acquisition cost of RBI stake in SBI (` 35,531 crores)
o: GDP data till 2008-09 are calculated taking 1999-00 prices as the base.
: Base Rate relates to five major banks since July 1, 2010. Earlier figures relate to
Benchmark Prime Lending Rate (BPLR).
: Inflation data till 2009-10 are calculated taking 1993-94 as base
: IIP data till 2010 - 2011 are calculated taking 1993-94 as base
Key Macroeconomic
Indicators
Source: RBI Annual Report, Bulletin, Weekly Statistics, SEBI & CCIL
Notes:
Yearly figures are as in March-end
* : Base: 1980-81=100
*** : Base : 1981-82=100
**: Figure as at March-end
****: Figures are cumulative for the year
Q.E : Quick Estimate
R.E : Revised Estimate
A.E : Advance Estimate
B.E.: Budget Estimate
#Turnover Ratio=(Central Government Securities Volumes for 12 months/Market
Capitialisation during the month)*100
Percentage figures in brackets denote y-o-y growth
TABLE 2: WORLD ECONOMIC INDICATORS

USA
UK
Japan
Euro
South Korea
China
India
Gross Domestic Product (%): 2013 Q3
0.80
3.60
0.50
0.10
1.10
2.20
4.8#
Fiscal Deficit: 2012 (% of GDP)
-6.10
-4.10 @
-9.20
-3.70
-1.10
-1.50
-4.80
Exports: September 2013
41.743 bn
$192.673 bn @
6104.51 bn@ 158.000 bn
$ 47.918 bn @
$ 185.406 bn @
$ 27.27 bn @
Imports: September 2013
45.011 bn
$233.334 bn @
7195.19 bn @
144.99 bn
$ 43.114 bn @
$ 154.299 bn @
$ 37.83 bn @
- 14.512 bn #
-$98.89 bn
587.30 bn^
14.04 bn ^
$ 9.51 bn ^ @
$ 39.70 bn @
-$ 5.20 bn @
Inflation (October 2013)
2.20
1.00
1.10
0.90 @
0.90 @
3.20
7.00
Industrial Production (%) (September 2013)
2.20
3.20@
5.10
1.10
3.00 @
10.30@
2.00
158.30
1178.10
61.90 (&)
55.60
1293.80
56.80
Exchange rate (per 1USD) ( November 29, 2013)
0.61
1.00
102.35
0.73
1057.64
6.13
62.39
10-yr Bond Yield (%) (November 29, 2013)
2.78
2.75
0.61
1.70(&)
3.67
4.40
8.72
Key Policy Rates (%)
0.50
0.00-0.25
0.00-0.10
0.25
2.50
6.00
7.75
Current Account (Q2 2013)
US Treasury Securities Holding (USD Billion)( September 2013)
@ Figures Refer to next period

# Figures Refer to previous period
: USA: Fed Funds Rate, UK: Official bank rate, Main refinancing operations (fixed rate), Japan: Uncollateralised Overnight rate, Germany: Main refinancing rate, South Korea:
Base Rate, China: One year Lending rate, India: Repo Rate
&: US Treasury Securities Holding of Germany
^: September 2013
Source: Respective countries central bank.
Key Macroeconomic
Indicators
80
CCIL
OUTSTANDING GOVERNMENT DEBT

TABLE 3: OUTSTANDING GOVERNMENT DEBT
Sr.
No.
Security
ISIN No.
Issue
Date
Market
Next
Outstanding CapitaliMaturity
Coupon
Coupon Prices
(` Crore)
zation
Date
date
(` Crore)
Price
Change
Due to
Modified
Previous
Mod V+ (for V- (for
Convexity
Duration
Yield
Duration
Duration 100bps) 100bps)
Yield (%)
for
100bps
(%)
Expected
Price
price Change
Actual
Change
for a 100bps
Due to
Change
rise in
for 100pbs PV01
Convexity
yield due to
for
increase in
Duration and
100bps
yield
Convexity
(%)
Effect(%)
Central Government Securities

99.25 8.7800% 8.5366%
0.2111
0.20
100.58
101.00
0.09
-0.20
0.00
-0.20
-0.21 0.00
15273.60
15189 6.72% 99.45 8.9874% 8.8664%
0.2333
0.22
101.01
101.47
0.10
-0.22
0.00
-0.22
-0.23 0.00
16-Apr-02 16-Apr-14 16-Apr-14
42000.00
41781 7.37%
99.48 8.7168% 8.8117%
0.3778
0.36
100.01
100.75
0.27
-0.36
0.00
-0.36
-0.36 0.00
IN0020090018 6.07% GS 2014
15-May-09 15-May-14 15-May-14
40000.00
39495 6.07% 98.74 8.9127% 8.4878%
0.4583
0.44
98.56
99.43
0.39
-0.44
0.00
-0.44
-0.44 0.00
IN0019830010 10% 2014
30-May-83 30-May-14 30-May-14
2333.26
IN0020090067 7.32% 2014
20-Oct-09 20-Oct-14 20-Apr-14
18000.00
IN0019840084 10.50% 2014
29-Oct-84 29-Oct-14 29-Apr-14
IN0020080043 7.56% G.S. 2014
IN0020030105 5.32% 2014
16-Feb-04 16-Feb-14 16-Feb-14
5000.00
IN0020020221 6.72% 2014 (Pvt. Placement)
24-Feb-03 24-Feb-14 24-Feb-14
IN0020020049 7.37% 2014
4963 5.32%
0.48
100.01
100.97
0.46
-0.48
0.00
-0.48
-0.48 0.00
0.8711
0.83
98.81
100.47
1.10
-0.83
0.01
-0.83
-0.83 0.01
1755.10
1782 10.50% 101.54 8.6962% 8.4322%
0.8892
0.85
101.57
103.32
1.15
-0.85
0.01
-0.85
-0.85 0.01
03-Nov-08 03-Nov-14 3-May-14
41000.00
40563 7.56% 98.93 8.7737% 8.5145%
0.9067
0.87
98.64
100.37
1.18
-0.87
0.01
-0.86
-0.86 0.01
IN0019990137 11.83% 2014
12-Nov-99 12-Nov-14 12-May-14
11500.00
11819 11.83% 102.78 8.7088% 8.4509%
0.9225
0.88
102.46
104.29
1.22
-0.88
0.01
-0.88
-0.88 0.01
10
IN0020000132 10.47% 2015
12-Feb-01 12-Feb-15 12-Feb-14
6430.00
6555 10.47% 101.95 8.7028% 8.4340%
1.1276
1.08
103.96
106.23
1.74
-1.08
0.01
-1.07
-1.07 0.01
11
IN0020000033 10.79% 2015
19-May-00 19-May-15 19-May-14
2683.45
2762 10.79% 102.92 8.6293% 8.3749%
1.3952
1.34
101.88
104.64
2.48
-1.34
0.01
-1.33
-1.33 0.01
12
IN0019850034 11.50% 2015
21-May-85 21-May-15 21-May-14
3560.50
3699 11.50% 103.88 8.6398% 8.3746%
1.3966
1.34
102.78
105.57
2.49
-1.34
0.01
-1.33
-1.33 0.01
13
IN0020090026 6.49% 2015
08-Jun-09 08-Jun-15
8-Dec-13
40000.00
38880 6.49%
97.20 8.4874% 8.3688%
1.4279
1.37
98.94
101.69
2.63
-1.37
0.01
-1.36
-1.36 0.01
14
IN0020100023 7.17% GOVT.STOCK 2015
14-Jun-10 14-Jun-15 14-Dec-13
56000.00
55017 7.17% 98.24 8.4064% 8.3535%
1.4361
1.38
100.16
102.96
2.66
-1.38
0.01
-1.36
-1.36 0.01
15
IN0020000090 11.43% 2015 (Pvt. Placement)
07-Aug-00 07-Aug-15
7-Feb-14
12000.00
12510 11.43% 104.25 8.6503% 8.3827%
1.5339
1.47
106.27
109.44
3.01
-1.47
0.02
-1.46
-1.46 0.02
16
IN0020020130 7.38% 2015
03-Sep-02 03-Sep-15
3-Mar-14
63000.00
61819 7.38%
98.13 8.5384% 8.7490%
1.6528
1.59
98.34
101.51
3.38
-1.59
0.02
-1.57
-1.57 0.02
17
IN0020010099 9.85% 2015
16-Oct-01 16-Oct-15 16-Apr-14
10000.00
10203 9.85% 102.03 8.6451% 8.3770%
1.7429
1.67
101.53
104.98
3.72
-1.67
0.02
-1.65
-1.65 0.02
18
IN0020060219 7.59% 2016
12-Apr-06 12-Apr-16 12-Apr-14
68000.00
66834 7.59%
98.29 8.3969% 8.7658%
2.1886
2.10
97.24
101.41
5.64
-2.10
0.03
-2.07
-2.07 0.02
19
IN0020010016 10.71% 2016
19-Apr-01 19-Apr-16 19-Apr-14
9000.00
9390 10.71% 104.34 8.6502% 8.3914%
2.1506
2.06
103.41
107.76
5.52
-2.06
0.03
-2.03
-2.03 0.02
20
IN0020040013 5.59% 2016
04-Jun-04 04-Jun-16
4-Dec-13
6000.00
5592 5.59%
93.20 8.6598% 8.3866%
2.3045
2.21
93.85
98.08
6.25
-2.21
0.03
-2.18
-2.18 0.02
21
IN0019990129 12.30% 2016 (On Tap)
02-Jul-99
02-Jul-16
2-Jan-14
13129.85
14217 12.30% 108.28 8.6532% 8.4003%
2.2066
2.12
110.97
115.77
6.01
-2.12
0.03
-2.09
-2.09 0.02
81
CCIL
outstanding
government debt
0.5000
98.82 8.7128% 8.4393%
2345 10.00% 100.49 8.9864% 8.4729%

17788 7.32%
TABLE 3: OUTSTANDING GOVERNMENT DEBT (Contd.)
Sr.
No.
ISIN No.
Security
Issue
Date
Market
Next
Coupon
Coupon Prices
zation
(` Crore)
Date
date
(` Crore)
Price
Change
Due to
Mod V+ (for V- (for
Previous
Modified
Yield
Duration
Convexity
Duration
Yield (%)
for
100bps
(%)
Expected
Price
price Change
Actual
Change
for a 100bps
Due to
Change
rise in
for 100pbs PV01
Convexity
yield due to
for
increase in
Duration and
100bps
yield
Convexity
(%)
Effect(%)
22
IN0020090059 7.02% 2016
17-Aug-09 17-Aug-16 17-Feb-14
60000.00
58033 7.02% 96.72 8.3883% 8.4098%
2.4655
2.37
96.43
101.10
7.11
-2.37
0.04
-2.33
-2.33 0.02
23
IN0020010107 8.07% 2017
15-Jan-02 15-Jan-17
15-Jan-14
69000.00
68034 8.07% 98.60 8.5843% 8.2343%
2.7396
2.63
99.00
104.34
8.81
-2.63
0.04
-2.58
-2.58 0.03
24
IN0020020031 7.49% 2017
16-Apr-02 16-Apr-17 16-Apr-14
58000.00
56001 7.49%
96.55 8.6840% 8.4688%
3.0131
2.89
94.70
100.33
10.34
-2.89
0.05
-2.84
-2.84 0.03
25
IN0020120021 8.07% 2017
03-Jul-12
03-Jul-17
3-Jan-14
50000.00
49335 8.07%
98.67 8.5033% 8.3925%
3.0845
2.96
99.00
105.04
11.13
-2.96
0.06
-2.90
-2.90 0.03
26
IN0020070010 7.99% 2017
09-Jul-07
09-Jul-17
9-Jan-14
71000.00
69468 7.99%
97.84 8.6948% 8.7583%
3.1029
2.97
98.02
104.03
11.22
-2.97
0.06
-2.92
-2.92 0.03
27
IN0020020098 7.46% 2017
28-Aug-02 28-Aug-17 28-Feb-14
57886.80
55603 7.46%
96.05 8.7112% 8.8663%
3.2638
3.13
94.96
101.09
12.20
-3.13
0.06
-3.07
-3.07 0.03
28
IN0020020163 6.25% 2018
02-Jan-03 02-Jan-18
2-Jan-14
16886.80
15466 6.25%
91.59 8.7377% 8.5413%
3.5504
3.40
91.02
97.43
14.38
-3.40
0.07
-3.33
-3.33 0.03
29
IN0020110014 7.83% G.S. 2018
11-Apr-11 11-Apr-18 11-Apr-14
73000.00
70870 7.83% 97.08 8.6422% 8.5289%
3.7309
3.58
94.71
101.74
15.83
-3.58
0.08
-3.50
-3.50 0.04
30
IN0020080019 8.24% GOVT. STOCK 2018
22-Apr-08 22-Apr-18 22-Apr-14
75000.00
73653 8.24%
98.20 8.7368% 8.5744%
3.7372
3.58
95.60
102.70
15.90
-3.58
0.08
-3.50
-3.50 0.04
31
IN0020010024 10.45% 2018
30-Apr-01 30-Apr-18 30-Apr-14
3716.00
3944 10.45% 106.14 8.7404% 8.5522%
3.6464
3.49
103.35
110.83
15.40
-3.49
0.08
-3.42
-3.42 0.04
32
IN0020030063 5.69% 2018 (conv)
25-Sep-03 25-Sep-18 25-Mar-14
16130.00
14205 5.69%
88.07 8.7764% 8.5984%
4.1933
4.02
85.60
92.76
19.58
-4.02
0.10
-3.92
-3.92 0.04
33
IN0019980286 12.60% 2018 (On Tap)
23-Nov-98 23-Nov-18 23-May-14
12631.88
14549 12.60% 115.17 8.7729% 8.6221%
3.9249
3.76
111.18
119.86
18.09
-3.76
0.09
-3.67
-3.67 0.04
34
IN0020030097 5.64% 2019
02-Jan-04 02-Jan-19
2-Jan-14
10000.00
8705 5.64%
87.05 8.8545% 8.6501%
4.3285
4.15
85.75
93.17
21.17
-4.15
0.11
-4.04
-4.04 0.04
35
IN0020080068 6.05% 2019
02-Feb-09 02-Feb-19
2-Feb-14
53000.00
46914 6.05%
88.52 8.8619% 8.6590%
4.3727
4.19
86.81
94.39
21.62
-4.19
0.11
-4.08
-4.08 0.04
36
IN0020130038 7.28% GS 2019
03-Jun-13 03-Jun-19
3-Dec-13
40000.00
37381 7.28%
93.45 8.8051% 8.6325%
4.4297
4.24
93.02
101.26
22.92
-4.24
0.11
-4.13
-4.13 0.04
37
IN0020030048 6.05% 2019 (conv)
12-Jun-03 12-Jun-19 12-Dec-13
11000.00
9664 6.05%
87.86 8.8740% 8.6783%
4.5772
4.38
86.81
94.76
23.97
-4.38
0.12
-4.26
-4.27 0.04
38
IN0020090042 6.90% 2019
13-Jul-09
13-Jul-19
13-Jan-14
45000.00
41169 6.90%
91.49 8.8525% 8.6807%
4.5762
4.38
90.10
98.35
24.12
-4.38
0.12
-4.26
-4.26 0.04
39
IN0020010065 10.03% 2019
09-Aug-01 09-Aug-19
9-Feb-14
6000.00
6303 10.03% 105.05 8.8755% 8.6799%
4.3807
4.19
103.72
112.80
22.82
-4.19
0.11
-4.08
-4.08 0.05
40
IN0020020171 6.35% 2020
02-Jan-03 02-Jan-20
2-Jan-14
61000.00
53777 6.35%
88.16 8.9093% 8.7227%
4.9260
4.72
86.61
95.18
27.90
-4.72
0.14
-4.58
-4.58 0.04
41
IN0020110071 8.19% G.S. 2020
16-Jan-12 16-Jan-20
16-Jan-14
74000.00
71484 8.42% 96.60 9.1523% 9.2337%
4.7351
4.53
95.35
104.38
26.44
-4.53
0.13
-4.40
-4.40 0.05
42
IN0020000025 10.70% 2020
22-Apr-00 22-Apr-20 22-Apr-14
6000.00
6514 10.70% 108.57 8.9091% 8.7235%
4.8157
4.61
104.79
114.91
27.48
-4.61
0.14
-4.47
-4.48 0.05
43
IN0020100015 7.80% G.S. 2020
3-May-10 3-May-20
3-May-14
60000.00
56770 7.80%
94.62 8.9166% 8.7341%
5.1026
4.88
90.69
100.00
29.88
-4.88
0.15
-4.74
-4.74 0.05
44
IN0020120054 8.12% Govt Stock 2020
10-Dec-12 10-Dec-20 10-Dec-13
65000.00
62507 8.12% 96.16 8.8641% 8.7182%
5.2470
5.02
95.14
105.19
33.04
-5.02
0.17
-4.86
-4.86 0.05
outstanding
government debt
82
CCIL
Sr.
No.
Security
ISIN No.
Issue
Date
Market
Next
Coupon
Coupon Prices
(` Crore)
zation
Date
date
(` Crore)
Price
Change
Due to
Previous
Mod V+ (for V- (for
Modified
Convexity
Duration
Yield
Yield (%)
Duration
for
100bps
(%)
Price
Change
Due to
Convexity
for
100bps
(%)
Expected
price Change
Actual
for a 100bps
Change
rise in
for 100pbs PV01
yield due to
increase in
Duration and
yield
Convexity
Effect(%)
IN0020000124 11.60% 2020
27-Dec-00 27-Dec-20 27-Dec-13
5000.00
5679 11.60% 113.58 8.9639% 8.7696%
4.9412
4.73
113.08
124.30
30.39
-4.73
0.15
-4.58
-4.58 0.06
46
IN0020110022 7.80% G.S. 2021
11-Apr-11 11-Apr-21 11-Apr-14
68000.00
63699 7.80%
93.67 8.9897% 8.8018%
5.6150
5.37
89.82
100.01
36.79
-5.37
0.18
-5.19
-5.19 0.05
47
IN0020060318 7.94% G.S. 2021
24-May-06 24-May-21 24-May-14
49000.00
46225 7.94%
94.34 8.9956% 8.8088%
5.7169
5.47
89.48
99.82
37.92
-5.47
0.19
-5.28
-5.29 0.05
48
IN0020010040 10.25% 2021
30-May-01 30-May-21 30-May-14
26213.32
27996 10.25% 106.80 8.9844% 8.7953%
5.4853
5.25
101.38
112.60
35.74
-5.25
0.18
-5.07
-5.08 0.06
49
IN0020110030 8.79% G.S. 2021
08-Nov-11 8-Nov-21
8-May-14
83000.00
81834 8.79% 98.59 9.0400% 8.7810%
5.8308
5.58
93.80
104.87
40.25
-5.58
0.20
-5.38
-5.38 0.06
50
IN0020060037 8.20% Government Stock 2022
15-Feb-07 15-Feb-22 15-Feb-14
57632.33
54448 8.20%
94.47 9.1686% 8.9689%
5.9175
5.66
91.58
102.56
42.13
-5.66
0.21
-5.45
-5.45 0.05
51
IN0020020072 8.35% 2022
14-May-02 14-May-22 14-May-14
44000.00
42241 8.35%
96.00 9.0350% 8.8553%
6.1545
5.89
90.91
102.27
44.92
-5.89
0.22
-5.66
-5.67 0.06
52
IN0020120013 8.15% 2022
11-Jun-12 11-Jun-22 11-Dec-13
83000.00
74966 8.15% 90.32 9.8528% 8.8521%
5.9276
5.65
89.02
99.67
43.18
-5.65
0.22
-5.43
-5.44 0.05
53
02-Aug-07 02-Aug-22 2-Feb-14
61969.41
58402 8.08%
94.24 9.0488% 8.8703%
6.1513
5.88
91.41
102.82
45.94
-5.88
0.23
-5.66
-5.66 0.06
54
IN0020039031 5.87% 2022 (conv)
28-Aug-03 28-Aug-22 28-Feb-14
11000.00
8910 5.87%
81.00 9.0595% 8.8845%
6.6078
6.32
77.49
87.93
50.94
-6.32
0.25
-6.07
-6.07 0.05
55
IN0020070051 8.13% 2022
21-Sep-07 21-Sep-22 21-Mar-14
70495.28
66594 8.13%
94.47 9.0514% 8.8783%
6.2797
6.01
90.48
102.03
47.47
-6.01
0.24
-5.77
-5.78 0.06
56
IN0020030014 6.30% 2023
09-Apr-03 09-Apr-23 9-Apr-14
13000.00
10753 6.30%
82.71 9.0784% 8.9063%
6.8881
6.59
78.32
89.36
55.86
-6.59
0.28
-6.31
-6.32 0.06
57
IN0020130012 7.16% GOVT STOCK 2023
20-May-13 20-May-23 20-May-14
77000.00
68059 7.16% 88.39 9.0074% 8.5971%
6.8441
6.55
83.02
94.64
55.53
-6.55
0.28
-6.27
-6.28 0.06
58
IN0020030055 6.17% 2023
12-Jun-03 12-Jun-23 12-Dec-13
14000.00
11431 6.17%
81.65 9.0878% 8.9165%
6.8323
6.54
79.24
90.30
56.35
-6.54
0.28
-6.25
-6.26 0.06
59
IN0020130061 8.83% G.S. 223
25-Nov-13 25-Nov-23 25-May-14
7000.00
7049 8.83% 100.69 8.7241%
6.8396
6.55
94.49
107.72
57.05
-6.55
0.29
-6.27
-6.28 0.07
60
IN0020090034 7.35% 2024
22-Jun-09 22-Jun-24 22-Dec-13
10000.00
8865 7.35%
88.65 9.0397% 8.8771%
7.0562
6.75
85.95
98.37
62.30
-6.75
0.31
-6.44
-6.45 0.06
61
IN0020110048 9.15% G.S. 2024
14-Nov-11 14-Nov-24 14-May-14
92000.00
92736 9.15% 100.80 9.0323% 8.9683%
7.1296
6.82
94.61
108.44
63.40
-6.82
0.32
-6.50
-6.52 0.07
62
IN0020120047 8.20% G.S. 2025
24-Sep-12 24-Sep-25 24-Mar-14
90000.00
83904 8.20% 93.23 9.1466% 8.9813%
7.5107
7.18
88.25
101.88
71.48
-7.18
0.36
-6.82
-6.84 0.07
63
IN0020030071 5.97% 2025
25-Sep-03 25-Sep-25 25-Mar-14
16687.95
12969 5.97%
77.71 9.0821% 8.9248%
8.0434
7.69
73.03
85.18
79.16
-7.69
0.40
-7.30
-7.31 0.06
64
IN0020120039 8.33% G.S. 2026
09-Jul-12
9-Jan-14
90000.00
84554 8.33% 93.95 9.1463% 8.9825%
7.6198
7.29
90.48
104.68
76.06
-7.29
0.38
-6.91
-6.92 0.07
65
IN0020010081 10.18% 2026
11-Sep-01 11-Sep-26 11-Mar-14
15000.00
16236 10.18% 108.24 9.0736% 8.9133%
7.4851
7.16
102.96
118.81
73.87
-7.16
0.37
-6.79
-6.81 0.08
66
15-Feb-07 15-Feb-27 15-Feb-14
63388.55
59419 8.24% 93.74 9.0596% 9.1630%
7.9169
7.57
89.24
103.83
82.07
-7.57
0.41
-7.16
-7.18 0.07
83
CCIL
09-Jul-26
outstanding
government debt
45
Sr.
No.
ISIN No.
Security
Issue
Date
Market
Next
Coupon
Coupon Prices
(` Crore)
zation
Date
date
(` Crore)
Price
Change
Due to
Modified
Mod V+ (for V- (for
Previous
Convexity
Duration
Yield
Duration
Yield (%)
for
100bps
(%)
Price
Change
Due to
Convexity
for
100bps
(%)
Expected
price Change
Actual
for a 100bps
Change
rise in
for 100pbs PV01
yield due to
increase in
Duration and
yield
Convexity
Effect(%)
67
2-Aug-07 2-Aug-27
2-Feb-14
73427.33
68412 8.26%
93.17 9.1425% 9.0987%
8.0112
7.66
88.92
103.65
85.05
-7.66
0.43
-7.24
-7.25 0.07
68
IN0020070069 8.28% 2027
21-Sep-07 21-Sep-27 21-Mar-14
68252.24
64017 8.28% 93.80 9.0743% 8.8373%
8.1592
7.81
88.34
103.26
87.35
-7.81
0.44
-7.37
-7.39 0.07
69
IN0020020247 6.01% 2028
07-Aug-03 25-Mar-28 25-Mar-14
15000.00
11301 6.01%
75.34 9.1278% 8.9745%
8.9048
8.52
70.29
83.34
101.51
-8.52
0.51
-8.01
-8.03 0.07
70
IN0020030022 6.13% 2028
04-Jun-03 04-Jun-28
4-Dec-13
11000.00
8374 6.13%
76.13 9.1307% 8.9772%
8.7068
8.33
72.92
86.13
100.04
-8.33
0.50
-7.83
-7.85 0.07
71
IN0020130053 9.20% GOVT. STOCK 2030
30-Sep-13 30-Sep-30 31-Mar-14
11000.00
11102 9.20% 100.92 9.0892% 8.9084%
8.7758
8.39
94.38
111.63
106.71
-8.39
0.53
-7.86
-7.89 0.09
72
IN0020110055 8.97% G.S. 2030
05-Dec-11 05-Dec-30 5-Dec-13
90000.00
88780 8.97% 98.64 9.1281% 9.0548%
8.5979
8.22
91.99
108.98
108.81
-8.22
0.54
-7.68
-7.96 0.08
73
15-Feb-07 15-Feb-32 15-Feb-14
90687.11
83477 8.28%
92.05 9.1844% 9.0425%
9.1222
8.72
86.75
103.29
118.24
-8.72
0.59
-8.13
-8.16 0.08
74
2-Aug-07 2-Aug-32
2-Feb-14
54434.05
50381 8.32% 92.55 9.1571% 9.0503%
9.1831
8.78
87.46
104.26
121.02
-8.78
0.61
-8.18
-8.21 0.08
75
IN0020020106 7.95% 2032
28-Aug-02 28-Aug-32 28-Feb-14
59000.00
52716 7.95%
89.35 9.1457% 8.9956%
9.3463
8.94
83.75
100.15
124.28
-8.94
0.62
-8.32
-8.35 0.08
76
IN0020070077 8.33% 2032
21-Sep-07 21-Sep-32 21-Mar-14
1522.48
1412 8.33%
92.75 9.1423% 8.9919%
9.3230
8.92
86.48
103.37
123.48
-8.92
0.62
-8.30
-8.33 0.08
77
IN0020040039 7.50% 2034
10-Aug-04 10-Aug-34 10-Feb-14
60000.00
50889 7.50%
84.81 9.1455% 8.9986%
9.7476
9.32
79.56
95.87
139.13
-9.32
0.70
-8.63
-8.67 0.08
78
IN0020050012 7.40% 2035
09-Sep-05 09-Sep-35 9-Mar-14
52000.00
43461 7.40%
83.58 9.1501% 9.0038%
9.9965
9.56
77.69
94.06
147.42
-9.56
0.74
-8.82
-8.87 0.08
79
IN0020060045 8.33% 2036
07-Jun-06 07-Jun-36
7-Dec-13
86000.00
79327 8.33%
92.24 9.1488% 9.0020%
9.6510
9.23
88.01
105.86
142.83
-9.23
0.71
-8.51
-8.56 0.09
80
IN0020080050 6.83% G.S. 2039
19-Jan-09 19-Jan-39 19-Jan-14
13000.00
10048 6.83%
77.29 9.1519% 9.0090% 10.4074
9.95
72.46
88.43
168.41
-9.95
0.84
-9.11
-9.17 0.08
81
IN0020100031 8.30% G.S. 2040
02-Jul-10
2-Jan-14
72000.00
65939 8.30%
91.58 9.1473% 9.0038% 10.1493
9.71
86.50
105.05
164.53
-9.71
0.82
-8.88
-8.94 0.09
82
IN0020110063 8.83% G.S. 2041
12-Dec-11 12-Dec-41 12-Dec-13
90000.00
86744 8.83% 96.38 9.1911% 9.0503% 10.0913
9.65
91.58
111.09
166.21
-9.65
0.83
-8.82
-8.88 0.10
83
IN0020120062 8.30% GOVT STOCK 2042
31-Dec-12 31-Dec-42 31-Dec-13
49000.00
44734 8.30% 91.29 9.1599% 9.0354% 10.3259
9.87
86.16
105.00
174.75
-9.87
0.87
-9.00
-9.06 0.09
02-Jul-40
3404627.28 3221632.61
5.8020
outstanding
government debt
84
CCIL
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
16
17
Security
Special Securities
7.61% Oil Marketing Companies GOI
IN0020050061
Special Bonds, 2015
7.59% Oil Marketing Companies GOI
IN0020050095
Special Bonds, 2015
IN0020009018 11.50% GOI (IIBI) Spl Securities 2021
8.01% Postal Life Insurance Government of
IN0020109016
India Special Security 2021
8.13% Oil Marketing Companies
IN0020060094
Government of India Special Bonds, 2021
IN0020019017 9.75% GOI (IFCI) SPL SEC 2021
IN0020060128
8.15% Government of India FCI Special
IN0020060110
Bonds, 2022
IN0020089028 7% FERT COS GOI SPL BOND 2022
6.20% Fertilizer Companies Government
IN0020089044
of India Special Bonds, 2022
6.65% Fertilizer Companies Government of
IN0020089051
India Special Bonds, 2023
8.08% Postal Life Insurance Government of
IN0020109024
India Special Security 2023
IN0020089010
Government of India Special Bonds 2023
8.30% Fertilizer Companies GOI Special
IN0020079011
Bonds, 2023
IN0020060052
IN0020060060
8.35% SBI Rights Issue Government of
IN0020079045
85
CCIL
Market
Next
Coupon
Coupon Prices
(` Crore) zation
Date
date
(` Crore)
Price
Change
Due to
Convexity
for 100bps
(%)
Expected
price Change
Actual
for a 100bps
Change
rise in yield
for 100pbs
due to
increase in
Duration and
yield
Convexity
Effect(%)
07-Mar-06 07-Mar-15 7-Mar-14
1750.00
1726 7.61%
98.62 8.7633% 8.4782%
1.16
99.22
101.55
1.95
-1.16
0.01
-1.15
-1.15
0.01
23-Mar-06 23-Mar-15 23-Mar-14
1750.00
1725 7.59%
98.56 8.7564% 8.4712%
1.21
98.78
101.19
2.07
-1.21
0.01
-1.20
-1.20
0.01
30-Mar-01 30-Mar-21 30-Mar-14
100.00
113 11.50% 113.24 8.9903% 8.8138%
4.98
109.60
121.09
32.97
-4.98
0.16
-4.82
-4.82
0.06
31-Mar-11 31-Mar-21 31-Mar-14
4000.00
3789 8.01%
94.71 9.0066% 8.8332%
5.32
91.11
101.34
36.21
-5.32
0.18
-5.14
-5.14
0.05
16-Oct-06 16-Oct-21 16-Apr-14
5000.00
4749 8.13%
94.99 9.0302% 8.8616%
5.60
90.79
101.55
40.40
-5.60
0.20
-5.40
-5.40
0.05
30-Oct-01 30-Oct-21 30-Apr-14
400.00
416 9.75% 104.03 9.0240% 8.8540%
5.45
99.32
110.77
38.93
-5.45
0.19
-5.26
-5.26
0.06
28-Nov-06 28-Nov-21 28-May-14
5000.00
4640 7.75%
92.79 9.0350% 8.8678%
5.76
87.68
98.38
42.22
-5.76
0.21
-5.55
-5.55
0.05
16-Oct-06 16-Oct-22 16-Apr-14
5000.00
4724 8.15%
94.47 9.0670% 9.1996%
6.07
89.90
101.50
48.25
-6.07
0.24
-5.83
-5.84
0.06
10-Dec-08 10-Dec-22 10-Dec-13
6071.51
5304 7.00%
87.35 9.0819% 8.9220%
6.14
85.31
96.46
50.14
-6.14
0.25
-5.89
-5.90
0.06
24-Dec-08 24-Dec-22 24-Dec-13
491.41
405 6.20%
82.41 9.0873% 8.9288%
6.33
79.93
90.72
52.34
-6.33
0.26
-6.07
-6.07
0.05
29-Jan-09 29-Jan-23 29-Jan-14
1710.93
1455 6.65%
85.04 9.0869% 8.9284%
6.34
81.97
93.04
52.55
-6.34
0.26
-6.07
-6.08
0.06
31-Mar-11 31-Mar-23 31-Mar-14
3000.00
2812 8.08%
93.74 9.0852% 8.9257%
6.26
89.38
101.30
51.82
-6.26
0.26
-6.00
-6.01
0.06
10-Nov-08 10-Nov-23 10-May-14
22000.00
20713 8.20%
94.15 9.1056% 8.9487%
6.56
88.66
101.08
57.03
-6.56
0.29
-6.27
-6.28
0.06
7-Dec-07 7-Dec-23
7-Dec-13
3880.00
3677 8.30%
94.77 9.1070% 8.9500%
6.33
92.76
105.29
55.38
-6.33
0.28
-6.06
-6.07
0.06
15-Dec-06 15-Dec-23 15-Dec-13
4150.00
3854 8.01%
92.86 9.1089% 8.9524%
6.40
90.61
102.99
56.27
-6.40
0.28
-6.12
-6.13
0.06
12-Feb-07 12-Feb-24 12-Feb-14
5000.00
4699 8.20%
93.98 9.1158% 8.9596%
6.52
90.42
103.02
57.88
-6.52
0.29
-6.23
-6.24
0.06
27-Mar-08 27-Mar-24 27-Mar-14
9996.01
9490 8.35%
94.94 9.1136% 8.9578%
6.62
90.30
103.07
59.20
-6.62
0.30
-6.32
-6.33
0.06
outstanding
government debt
15
ISIN No.
Issue
Date
Price
Change
Due to
Previous
Mod V+ (for V- (for
Modified
Yield
Duration
Convexity
Yield (%)
Duration
for
100bps
(%)
Sr.
No.
Security
ISIN No.
18
IN0020099019
19
IN0020060011
20
IN0020089036
21
IN0020079029
22
IN0020079052
23
IN0020089069
24
IN0020079037
25
IN0020089077
26
IN0020060102
27
IN0020060029
Issue
Date

Bonds, 2024
Government of India Special Bonds 2025
6.90% OIL MKTG COS GOI SB 2026
7.95% Fertilizer Companies Government of
8.00% OIL MKT COS GOI SB 2026
Bonds, 2027
Market
Next
Coupon
Coupon Prices
(` Crore) zation
Date
date
(` Crore)
Price
Change
Due to
Modified
Mod V+ (for V- (for
Previous
Convexity
Duration
Yield
Duration
Yield (%)
for
100bps
(%)
10306.33
9656 8.20%
93.69 9.1285% 8.9744%
6.80
89.20
102.20
63.09
-6.80
0.32
-6.49
-6.50
0.06
15-Dec-06 15-Dec-24 15-Dec-13
5000.00
4620 8.03%
92.40 9.1362% 8.9829%
6.78
89.87
102.91
64.14
-6.78
0.32
-6.46
-6.47
0.07
23-Dec-08 23-Dec-24 23-Dec-13
22000.00
17769 6.35%
80.77 9.1495% 9.0539%
7.15
77.84
89.81
69.31
-7.15
0.35
-6.80
-6.81
0.06
18-Jan-08 18-Jan-25 18-Jan-14
11256.92
10330 7.95%
91.77 9.1412% 8.9882%
6.88
88.47
101.52
65.57
-6.88
0.33
-6.55
-6.56
0.07
28-Mar-08 28-Mar-25 28-Mar-14
9296.92
8816 8.40%
94.83 9.1392% 8.9864%
6.98
89.86
103.33
67.10
-6.98
0.34
-6.65
-6.66
0.07
04-Feb-09 04-Feb-26
4-Feb-14
21942.00
18312 6.90% 83.45 9.1825% 9.0732%
7.48
79.59
92.44
77.60
-7.48
0.39
-7.10
-7.11
0.06
18-Feb-08 18-Feb-26 18-Feb-14
3550.87
3236 7.95%
91.14 9.1676% 9.0171%
7.30
86.91
100.57
74.74
-7.30
0.37
-6.92
-6.94
0.07
23-Mar-09 23-Mar-26 23-Mar-14
10000.00
9149 8.00%
91.49 9.1641% 9.0139%
7.38
86.46
100.21
76.01
-7.38
0.38
-7.00
-7.02
0.07
29-Mar-07 29-Mar-26 29-Mar-14
4971.00
4694 8.40%
94.43 9.1603% 9.0097%
7.32
89.18
103.25
75.08
-7.32
0.38
-6.95
-6.96
0.07
12-Feb-07 12-Feb-27 12-Feb-14
6200.00
5751 8.23%
92.76 9.1845% 9.0354%
7.54
88.43
102.81
81.50
-7.54
0.41
-7.13
-7.15
0.07
Note: Prices in Bold are Last traded prices on November 30, 2013. Other prices are CCIL Model Prices
Duration is calculated considering November 30, 2013 as settlement date.
Duration
1 + Yield/2
2 V+ denotes the price due to 100 bps increase in yield; V- denotes the price due to 100 bps decrease in yield.
3
Convexity =
(V - ) + (V + ) - 2P0
P0 x (0.01 )
2
Where P0 denotes the current price before any change in yield.
4 Price Change Due to Modified Duration for 100bps (%) = Dur mod x ( 0 . 01) x 100 (A)
2
5 Price Change Due to Convexity for 100bps (%) = Convexity x ( 0 . 01) x 100 (B)
6 Expected price Change due to Duration and Convexity Effect (%) = (A) + (B)
7
Actual Change for 100bps (%) =
Expected
price Change
Actual
for a 100bps
Change
rise in yield
for 100pbs
due to
increase in
Duration and
yield
Convexity
Effect(%)
15-Sep-09 15-Sep-24 15-Mar-14
183823.91 166622.88
1 Modified Duration =
Price
Change
Due to
Convexity
for 100bps
(%)
V + - P0
x 100
P0
8 PV01 denotes the difference between the actual price and the price of the security for 1 bp change in the yield.
6.9968
outstanding
government debt
86
CCIL
outstanding
government debt

Sr.
No.
ISIN No.
Security
Issue
Date
Maturity Outstanding
(` Crore)
Date
Market
Capitalization
(` Crore)
Prices
Floating Rate / Inflation Linked Bonds

1
IN0020032010
FRB 2014 (7.54% - 364 day T-Bill)
IN0020042027
FRB 2015 (7.57% - 364 day T-Bill)
20-May-03 20-May-14
5000.00
4963
99.26
02-Jul-15
6000.00
5950
99.17
IN0020042035
FRB 2015 (II) (9.77% - 364 day T-Bill) 09-Aug-04 10-Aug-15
6000.00
6044
100.74
IN0020042019
FRB 2016 (7.62% - 364 day T-Bills)
6000.00
5947
99.11
IN0020022011
FRB 2017 (7.73% - 364 day T-Bills)
02-Jul-02
02-Jul-17
3000.00
3009
100.29
IN0020092071
FRB 2020 (7.34% - 182 day T-Bills)
21-Dec-09 21-Dec-20
13000.00
12855
98.89
IN0020130046
1.44% IIGS 2023
05-Jun-13 05-Jun-23
6000.00
4963
82.71
IN0020042050
FRB 2035 (7.17%- reset every 5 years)
25-Jan-05 25-Jan-35
350.00
344
98.21
45350.00
44074.80
01-Jul-04
07-May-04 07-May-16
IN002012Z029 364 DTB
12-Dec-12 12-Dec-13
5006.50
4995
99.77
IN002012Z029 364 DTB
26-Dec-12 26-Dec-13
5000.00
4968
99.36
IN002012Z029 364 DTB
09-Jan-13 09-Jan-14
5008.00
4955
98.94
IN002012Z029 364 DTB
23-Jan-13 23-Jan-14
5000.00
4935
98.69
IN002012Z029 364 DTB
06-Feb-13 06-Feb-14
5000.00
4916
98.32
IN002012Z029 364 DTB
20-Feb-13 20-Feb-14
5001.25
4906
98.10
IN002012Z029 364 DTB
06-Mar-13 06-Mar-14
5003.75
4892
97.77
IN002012Z029 364 DTB
20-Mar-13 20-Mar-14
5002.25
4865
97.25
IN002013Z027 364 DTB
03-Apr-13 03-Apr-14
5011.00
4862
97.03
10
IN002013Z027 364 DTB
17-Apr-13 17-Apr-14
5004.00
4844
96.80
11
IN002013Z035 364 DTB
30-Apr-13 01-May-14
5002.50
4825
96.45
12
IN002013Z043 364 DTB
15-May-13 15-May-14
5001.00
4808
96.14
13
IN002013Z050 364 DTB
29-May-13 29-May-14
5000.00
4791
95.83
14
IN002013Z068 364 DTB
12-Jun-13 12-Jun-14
5000.00
4776
95.51
15
IN002013Z076 364 DTB
26-Jun-13 26-Jun-14
5686.00
5410
95.15
16
IN002013Z084 364 DTB
10-Jul-13
10-Jul-14
5013.00
4757
94.89
17
IN002013Z092 364 DTB
24-Jul-13
24-Jul-14
5007.00
4734
94.54
18
IN002013Z100 364 DTB
07-Aug-13 07-Aug-14
5145.30
4853
94.33
19
IN002013Z118 364 DTB
21-Aug-13 21-Aug-14
5051.28
4747
93.98
20
IN002013Z126 364 DTB
04-Sep-13 04-Sep-14
5007.30
4688
93.63
21
IN002013Z134 364 DTB
18-Sep-13 18-Sep-14
5015.00
4681
93.33
22
IN002013Z142 364 DTB
01-Oct-13 02-Oct-14
6000.00
5582
93.04
23
IN002013Z159 364 DTB
15-Oct-13 16-Oct-14
6000.00
5562
92.70
24
IN002013Z167 364 DTB
30-Oct-13 30-Oct-14
6000.00
5548
92.47
25
IN002013Z175 364 DTB
14-Nov-13 13-Nov-14
4901.00
4519
92.20
CCIL
Treasury Bills
87
outstanding
government debt
TABLE 3: OUTSTANDING GOVERNMENT DEBT (Concld.)
CCIL
Sr.
No.
88
ISIN No.
Security
Issue
Date
Maturity Outstanding
(` Crore)
Date
Market
Capitalization
(` Crore)
Prices
26
IN002013Z183 364 DTB
27-Nov-13 27-Nov-14
6000.00
5525
92.08
27
IN002013Y053 182 DTB
05-Jun-13 05-Dec-13
5001.25
4994
99.86
28
IN002013Y061 182 DTB
19-Jun-13 19-Dec-13
5001.00
4977
99.52
29
IN002013Y079 182 DTB
03-Jul-13 02-Jan-14
5000.25
4960
99.19
30
IN002013Y095 182 DTB
31-Jul-13 30-Jan-14
5114.25
5036
98.46
31
IN002013Y103 182 DTB
14-Aug-13 14-Feb-14
5000.00
4912
98.24
32
IN002013Y111 182 DTB
28-Aug-13 27-Feb-14
5400.55
5289
97.93
33
IN002013Y129 182 DTB
11-Sep-13 13-Mar-14
5002.00
4882
97.61
34
IN002013Y137 182 DTB
25-Sep-13 27-Mar-14
5579.53
5428
97.29
35
IN002013Y145 182 DTB
09-Oct-13 10-Apr-14
6000.65
5816
96.93
36
IN002013Y152 182 DTB
23-Oct-13 24-Apr-14
6000.00
5794
96.56
37
IN002013Y160 182 DTB
06-Nov-13 08-May-14
6000.00
5780
96.33
38
IN002013Y178 182 DTB
20-Nov-13 22-May-14
6000.00
5759
95.99
39
IN002013X220 91 DTB
04-Sep-13 05-Dec-13
13242.30
13233
99.93
40
IN002013X238 91 DTB
11-Sep-13 12-Dec-13
7716.00
7698
99.77
41
IN002013X246 91 DTB
18-Sep-13 19-Dec-13
11103.00
11050
99.53
42
IN002013X253 91 DTB
25-Sep-13 26-Dec-13
17359.31
17250
99.37
43
IN002013X261 91 DTB
01-Oct-13 02-Jan-14
12317.00
12218
99.19
44
IN002013X279 91 DTB
09-Oct-13 09-Jan-14
11079.00
10971
99.02
45
IN002013X287 91 DTB
15-Oct-13 16-Jan-14
6000.00
5931
98.86
46
IN002013X295 91 DTB
23-Oct-13 23-Jan-14
8907.00
8791
98.70
47
IN002013X303 91 DTB
30-Oct-13 30-Jan-14
12554.40
12380
98.61
48
IN002013X311 91 DTB
06-Nov-13 06-Feb-14
9510.00
9355
98.37
49
IN002013X329 91 DTB
13-Nov-13 13-Feb-14
8806.00
8653
98.26
50
IN002013X337 91 DTB
20-Nov-13 20-Feb-14
12806.00
12563
98.10
51
IN002013X345 91 DTB
27-Nov-13 27-Feb-14
17260.00
16902
97.93
348625.62
339568.92
Note: Prices in Bold are Last traded prices on November 29, 2013.
Other prices are CCIL Model Prices.
outstanding
government debt
TABLE 4: STATE DEVELOPMENT LOANS (SDLS)
Andhra Pradesh
No. of Bonds
No.
%Share
Outstanding (` Crore)
Value
%Share
Wtd. Avg.
Coupon (%)
Wtd. Avg.
Maturity (yrs.)
107
7.00
99641.40
10.28
8.33
7.56
Arunachal Pradesh
25
1.64
872.54
0.09
8.11
6.42
Assam
28
1.83
9453.00
0.98
8.15
5.39
Bihar
39
2.55
27284.33
2.82
8.35
7.61
Chhattisgarh
11
0.72
5377.93
0.55
8.11
8.61
Goa
36
2.36
4347.33
0.45
8.30
7.60
Gujarat
79
5.17
78596.91
8.11
8.34
7.53
Haryana
58
3.80
34239.46
3.53
8.47
8.32
Himachal Pradesh
56
3.66
12765.27
1.32
8.16
6.42
10
Jammu & Kashmir
55
3.60
16624.98
1.72
8.50
7.36
11
Jharkhand
39
2.55
12160.93
1.25
8.23
7.34
12
Karnataka
40
2.62
43931.21
4.53
8.37
6.88
13
Kerala
84
5.50
56283.33
5.81
8.40
7.70
14
Madhya Pradesh
45
2.95
32978.39
3.40
8.25
7.07
15
Maharashtra
82
5.37
115897.32
11.96
8.34
7.57
16
Manipur
32
2.09
2369.34
0.24
8.04
6.35
17
Meghalaya
44
2.88
2478.70
0.26
8.24
6.80
18
Mizoram
37
2.42
1724.44
0.18
8.23
6.80
19
Nagaland
46
3.01
4140.40
0.43
8.25
6.86
20
Orissa
10
0.65
2921.09
0.30
6.46
2.45
21
Puducherry
13
0.85
2622.06
0.27
8.51
7.57
22
Punjab
100
6.54
48118.32
4.96
8.38
7.63
23
Rajastan
95
6.22
49565.80
5.11
8.25
7.28
24
Sikkim
24
1.57
1406.14
0.15
7.98
6.05
25
Tamil Nadu
99
6.48
89752.56
9.26
8.27
7.79
26
Tripura
30
1.96
2310.42
0.24
8.13
7.06
27
Uttar Pradesh
79
5.17
87154.67
8.99
8.30
6.94
28
Uttaranchal
33
2.16
8430.44
0.87
8.11
6.60
29
West Bengal
102
6.68
115789.08
11.95
8.40
7.43
1528
100
969237.80
100.00
8.14
6.53
State/Union Territory
CCIL
Sr.
No.
89
outstanding
government debt
TABLE 5: OUTSTANDING - GOVERNMENT SECURITIES, TREASURY BILLS AND STATE DEVELOPMENT LOANS
Amount ` Crore
CCIL
Month
90
Government
Securities
Special
Securities
Floating Rate
Bonds
Treasury
Bills#
State Development
Loans*
Total
Apr-06
931868.00
41903.69
46350.00
67072.91
239804.87 1326999.46
May-06
940819.00
41903.69
46350.00
76150.24
240104.87 1345327.79
Jun-06
955689.00
41903.69
46350.00
76537.87
240763.49 1361244.04
Jul-06
963689.00
41903.69
46350.00
84100.94
240763.49 1376807.12
Aug-06
970380.00
47152.47
46350.00
92801.37
242221.82 1398905.65
Sep-06
979380.00
47152.47
46350.00
95251.47
243271.82 1411405.75
Oct-06
988354.00
57152.47
46350.00
93358.52
243271.82 1428486.80
Nov-06
1002354.00
62152.47
44350.00
99852.39
243473.15 1452182.00
Dec-06
1011354.00
67413.26
44350.00
96859.85
245904.37 1465881.48
Jan-07
1020354.00
62564.48
44350.00
102420.08
247867.61 1477556.16
Feb-07
1028354.00
81999.14
44350.00
108913.26
247472.70 1511089.10
Mar-07
1058997.00
78256.88
44350.00
115473.69
251072.27 1548149.85
Apr-07
1071297.00
78256.88
44350.00
119965.64
254078.59 1567948.11
May-07
1077797.00
78256.88
44350.00
126189.40
250533.80 1577127.08
Jun-07
1102797.00
78256.88
44350.00
145981.76
252283.80 1623669.44
Jul-07
1128797.00
78256.88
44350.00
151565.34
255849.38 1658818.61
Aug-07
1169627.00
81937.41
44350.00
156379.61
253433.89 1705727.92
Sep-07
1191897.00
81237.41
44350.00
147411.54
256918.33 1721814.28
Oct-07
1236540.00
81237.41
44350.00
159450.17
259992.07 1781569.65
Nov-07
1256919.00
81237.41
44350.00
146252.36
262886.53 1791645.30
Dec-07
1263919.00
81238.20
44350.00
126327.36
268186.53 1784021.09
Jan-08
1273966.00
89369.64
44350.00
126951.13
276361.79 1810998.56
Feb-08
1288612.00
91655.10
44350.00
123605.11
289973.52 1838195.72
Mar-08
1288085.00
110948.03
44350.00
136139.95
302724.48 1882247.46
Apr-08
1319085.00
110948.03
44350.00
139593.07
310302.66 1924278.75
May-08
1320109.00
110948.03
44350.00
147979.97
307821.10 1931208.09
Jun-08
1332724.00
110948.03
44350.00
132825.20
311085.20 1931932.42
Jul-08
1347067.00
110948.03
44350.00
133659.95
313385.20 1949410.17
Aug-08
1348567.00
110948.03
44350.00
134160.86
313885.20 1951911.08
Sep-08
1361057.00
110948.03
44350.00
135751.52
315762.92 1967869.47
Oct-08
1371057.00
110649.56
44350.00
141434.52
318774.92 1986266.01
Nov-08
1371690.00
132649.56
44350.00
149632.01
319041.09 2017362.66
Dec-08
1374093.00
168649.56
44350.00
145070.40
327486.09 2059649.05
Jan-09
1403513.00
174649.56
44350.00
146566.95
338191.45 2107270.96
Feb-09
1421512.96
196591.56
44350.00
146762.02
356629.49 2165846.03
Mar-09
1468512.67
193220.17
44350.00
150273.80
369290.70 2225647.33
Apr-09
1478125.85
193220.17
44350.00
163472.50
414068.98 2293237.50
outstanding
government debt
Amount ` Crore
Floating Rate
Bonds
Treasury
Bills#
State Development
Loans*
Total
May-09
1526423.69
193220.17
44350.00
148275.25
414563.33 2326832.44
Jun-09
1564423.69
193220.17
44350.00
146874.80
421563.33 2370431.98
Jul-09
1615423.69
193220.17
44350.00
141338.92
427513.33 2421846.11
Aug-09
1651423.69
193220.17
44350.00
138854.64
437472.91 2465321.41
Sep-09
1697423.69
203526.50
44350.00
141887.94
452223.35 2539411.48
Oct-09
1727423.69
203526.50
44350.00
134980.94
465742.01 2576023.14
Nov-09
1756423.69
203526.50
44350.00
134014.74
476964.28 2615279.21
Dec-09
1783423.69
203526.50
43350.00
134764.74
489096.47 2654161.40
Jan-10
1779887.91
202826.50
46350.00
134753.74
496442.94 2660261.09
Feb-10
1787887.91
199607.03
46350.00
134660.14
509676.73 2678181.82
Mar-10
1787887.91
199214.03
46350.00
137466.34
517405.62 2688323.90
Apr-10
1833887.91
199214.03
49350.00
136489.04
521551.88 2740492.86
May-10
1859011.69
199214.03
49350.00
144488.54
529259.38 2781323.64
Jun-10
1892238.66
199214.03
49350.00
131988.54
534974.23 2807765.47
Jul-10
1900110.16
199214.03
49350.00
116883.22
540925.06 2806482.48
Aug-10
1949367.38
199214.03
49350.00
122828.95
547425.91 2868186.27
Sep-10
1994117.38
199214.03
49350.00
123295.65
554535.06 2920512.12
Oct-10
2024969.09
199214.03
49350.00
127892.94
565736.86 2967162.92
Nov-10
2057964.09
199214.03
49350.00
117768.94
573111.86 2997408.92
Dec-10
2080492.84
199214.03
49350.00
125268.94
579026.86 3033352.67
Jan-11
2104647.19
199214.03
49350.00
126923.25
585834.62 3065969.09
Feb-11
2107564.66
199214.03
49350.00
127687.35
597643.35 3081459.39
Mar-11
2107564.66
200051.05
49350.00
141326.90
605803.69 3104096.30
Apr-11
2142091.74
200051.05
49350.00
169973.45
614026.69 3175492.93
May-11
2178091.74
200051.05
49350.00
201219.95
617839.16 3246551.90
Jun-11
2214091.74
200051.05
49350.00
221862.40
626839.16 3312194.35
Jul-11
2240091.74
193656.76
49350.00
245126.77
635951.08 3364176.35
Aug-11
2282230.38
193656.76
43350.00
258813.67
647703.99 3425754.79
Sep-11
2304230.38
193656.76
43350.00
221271.87
658253.99 3420762.99
Oct-11
2343983.47
193656.76
43350.00
224245.69
669335.66 3474571.58
Nov-11
2377983.47
193656.76
46350.00
230366.87
680524.30 3528881.40
Dec-11
2428983.47
193656.76
48350.00
212864.67
693052.62 3576907.52
Jan-12
2483983.47
193656.76
48350.00
232689.60
709031.96 3667711.78
Feb-12
2532978.47
193656.76
48350.00
271336.87
723972.96 3770295.05
Mar-12
2544978.47
189656.76
48350.00
267019.92
742411.75 3792416.90
Apr-12
2583978.47
189656.76
48350.00
302223.35
746077.40 3870285.98
May-12
2613978.47
189656.76
48350.00
308155.15
757649.21 3917789.59
Jun-12
2668404.34
189656.76
48350.00
328967.43
765210.46 4000588.98
Special
Securities
CCIL
Month
Government
Securities
91
outstanding
government debt
Amount ` Crore
Month
Government
Securities
Special
Securities
Floating Rate
Bonds
Treasury
Bills#
State Development
Loans*
Total
Jul-12
2719362.53
189656.76
48350.00
333413.61
779370.46 4070153.35
Aug-12
2794362.53
189656.76
48350.00
325173.76
789136.56 4146679.60
Sep-12
2829362.53
183893.91
48350.00
329499.27
806196.56 4197302.27
Oct-12
2868362.53
183893.91
48350.00
320097.07
828003.91 4248707.42
Nov-12
2933362.53
183893.91
43350.00
314675.75
842018.24 4317300.43
Dec-12
2969362.53
183893.91
43350.00
315530.69
852097.55 4364234.67
Jan-13
2981362.53
183893.91
43350.00
331630.52
868306.68 4408543.64
Feb-13
3017362.53
183823.91
43350.00
311164.52
874104.53 4429805.48
Mar-13
3017362.53
183823.91
43350.00
299764.15
889068.62 4433369.21
Apr-13
3062362.52
183823.91
43350.00
316620.40
897231.62 4503388.43
May-13
3121611.19
183823.91
43350.00
319429.14
900318.79 4568533.03
Jun-13
3167611.19
183823.91
45350.00
328052.31
904967.16 4629804.56
Jul-13
3227611.19
183823.91
45350.00
361888.95
908057.54 4726731.58
Aug-13
3291627.29
183823.91
45350.00
420017.27
919077.00 4861895.45
Sep-13
3283627.29
183823.91
43350.00
400722.16
933469.55 4847992.90
Oct-13
3328627.29
183823.91
44350.00
356220.45
954502.92 4870524.56
Nov-13
3404627.29
183823.91
45350.00
348625.62
969237.80 4951664.61
*Does not include Power Bonds

# Includes MSS Issuances
TABLE 6 : ANALYSIS OF OUTSTANDING BONDS

Percent
Period
Market Share of
Outstanding
G-Sec
T-Bill
SDLs
CCIL
G-Sec
T-Bill
Annualized Change
SDLs
G-Sec
T-Bill
SDLs
2005-06
76.73
5.34
17.93
14.18
6.34
10.00
2006-07
76.32
7.46
16.22
16.00
62.86
5.50
15.13
32.82
7.63
2007-08
76.57
7.27
16.16
21.37
17.90
20.57
17.23
27.50
11.90
2008-09
76.66
6.75
16.59
18.97
10.38
21.99
17.67
22.89
14.40
2009-10
75.64
5.11
19.25
19.19
-8.52
40.11
17.98
15.73
19.21
2010-11
75.88
4.56
19.56
15.57
2.81
17.08
17.57
13.44
18.85
2011-12
73.38
7.04
19.58
18.43
88.94
22.55
17.69
22.12
19.38
2012-13
73.18
6.76
20.05
16.58
12.26
19.75
17.72
21.03
19.61
2013-14 (Upto Nov 2013)
73.39
7.04
19.57
14.97
10.79
15.11
17.78
21.37
19.15
*Includes FRBs and Special Securities
92
Change
CCIL Indices
CCIL Indices
TABLE 7: INDEX COMPOSITION
Broad Index
CASBI Index
7.16% GOVT STOCK 2023
6.49% GOVT.STOCK 2015
9.75% Jharkand 2023
9.38% Andhra Pradesh SDL 2023
8.12% Govt Stock 2020
7.28% GS 2019
7.28% GS 2019
5.59% GOVT. STOCK 2016 9.29% Punjab SDL 2023
8.07% GS 2017
9.29% Madhya Pradesh SDL 2023
9.20% GOVT. STOCK 2030
7.49% G. S. 2017
7.83% GOVT.STOCK 2018 9.35% West Bengal SDL 2023
9.22% Gujarat SDL 2023
10
7.28% GS 2019
9.25% Haryana SDL 2023
11
9.40% Bihar SDL 2023
12
9.39% Karnataka SDL 2023
13
14
9.75% Himachal Pradesh SDL 2023
15
16
17
7.83% GOVT.STOCK2018
18
19
20
21
22
23
24
25
26
27
28
29
30
31
SDL Index
Liquid Index
CCIL
No.
93
TABLE 8: INDEX PERFORMANCE ANALYSIS

Per cent
2008-09
2007-08
2006-07
2005-06
2004-05
2009 -10
2010-11
2011-12
2013-14 (Nov '13)
2012-13
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Annualized
Annualized
Annualized
Annualized
Annualized
Annualized
Annualized
Annualized
Annualized
Annualized
Return
Return
Return
Return
Return
Return
Return
Return
Return
Return
Return (%)
Return (%)
Return (%)
Return (%)
Return (%)
Return (%)
Return (%)
Return (%)
Return (%)
Return (%)
(%)
(%)
(%)
(%)
(%)
(%)
(%)
(%)
(%)
(%)
Indices
Bond Index
Broad
TRI
-3.1192
-3.1192
3.1457
-0.0358
4.4156
1.4265
8.7180
3.2022 14.6533
5.3970
4.9645
5.3248
5.9700
5.4167
5.3764
5.4117
12.5434
6.1813
3.1205
5.6402
PRI
-10.5490
-10.5490
-5.0356
-7.8335
-3.8825
-6.5349
0.3991
-4.8476
6.0812
-2.7559
-2.6056
-2.7308
-1.7544
-2.5920
-2.4471
-2.5739
3.9053
-1.8744
-4.8572
-2.3896
Bond Index
Liquid
TRI
-4.8259
-4.8259
4.2365
-0.3977
4.9933
1.3678
7.1601
2.7858 14.9089
5.1035
3.5974
4.8510
6.1285
5.0326
5.4325
5.0825
10.4908
5.6701
0.3145
5.0424
PRI
-11.4388
-11.4388
-3.3270
-7.4717
-3.0496
-6.0206
-0.6675
-4.7100
6.4797
-2.5703
-3.4510
-2.7176
-1.6508
-2.5660
-2.8086
-2.5963
3.4935
-1.9378
-5.9967
-2.5684
TRI
-4.7886
-4.7886
2.2048
-1.3539
3.5553
0.2561
8.1171
2.1661 12.8054
4.2105
3.6406
4.1153
5.7445
4.3465
4.5829
4.3760
12.6371
5.2631
3.4506
4.8226
PRI
-11.1366
-11.1366
-5.1511
-8.1926
-4.0858
-6.8436
0.1014
-5.1539
5.0777
-3.1906
-2.6286
-3.0971
-6.0047
-3.5179
-2.0714
-3.3383
4.1990
-2.5285
-4.4630
-2.9623
Tenor
Index (upto
5 yrs)
TRI
1.9512
1.9512
5.2353
3.5802
4.3155
3.8247
9.4409
5.2012 10.8208
6.3018
6.4825
6.3319
3.7700
5.9621
5.3423
5.8844
9.7659
6.3088
6.8527
6.2121
PRI
-6.9090
-6.9090
-4.2334
-5.5807
-4.7466
-5.3034
0.2960
-3.9336
2.2316
-2.7310
-1.6107
-2.5452
-3.7924
-2.7244
-1.9219
-2.6244
1.5978
-2.1641
-1.1469
-2.2194
Tenor
Index
(5 -10 yrs)
TRI
-1.6974
-1.6974
3.3279
0.7839
4.5479
2.0233
9.0038
3.7253 12.9198
5.5023
3.7670
5.2111
5.6621
5.2754
5.0409
5.2460
11.8483
5.9599
3.8486
5.5211
PRI
-9.4569
-9.4569
-4.9089
-7.2107
-3.8357
-6.0991
0.4789
-4.4961
4.3543
-2.7882
-3.8358
-2.9636
-2.1813
-2.8522
-2.9799
-2.8682
3.4177
-2.1891
-4.1244
-2.5996
Tenor
Index
(10-15 yrs)
TRI
-2.5658
-2.5658
0.1106
-1.2366
4.0496
0.4949
7.8955
2.2961 14.0161
4.5395
4.2731
4.4950
6.8577
4.8293
4.7686
4.8217
13.0467
5.7052
2.3083
5.0822
PRI
-9.3205
-9.3205
-5.7221
-7.5388
-3.6066
-6.2462
-0.4663
-4.8335
5.5223
-2.8470
-3.4844
-2.9535
-1.3084
-2.7202
-3.4109
-2.8068
4.3128
-2.0404
-5.8453
-2.6779
Tenor
Index
(15-20 yrs)
TRI
-4.6626
-4.6626
1.9248
-1.4239
2.9959
0.0279
8.1429
1.9977 10.3660
3.6190
3.4365
3.5886
7.8264
4.1836
4.7491
4.2541
13.1055
5.2024
1.6309
4.5478
PRI
-10.9505
-10.9505
-6.3526
-8.6805
-3.7863
-7.0774
0.0010
-5.3562
4.5897
-3.4457
-4.4711
-3.6174
-0.5746
-3.1885
-3.3698
-3.2112
4.3310
-2.4008
-6.5452
-3.0851
Tenor
Index
(20-30 yrs)
TRI
-5.8697
-5.8697
1.0180
-2.4866
2.1018
-0.9806
7.2250
1.0100 16.1688
3.8746
2.5755
3.6570
7.4008
4.1837
4.5261
4.2264
14.1608
5.2861
0.6303
4.4426
PRI
-12.3719
-12.3719
-6.3404
-9.4063
-5.8226
-8.2272
-1.0090
-6.4735
7.1305
-3.8985
-5.3463
-4.1413
-1.0681
-3.7082
-3.9139
-3.7339
5.2615
-2.7736
-7.1376
-3.5622
3.4305
3.4305
3.9073
3.6686
3.8471
3.7281
5.0903
4.0670
5.4776
4.3476
2.5075
4.0386
3.3117
3.9345
5.0140
4.0688
5.8633
4.2514
5.5139
4.3220
3.4001
3.4001
3.8573
3.6284
3.7763
3.6777
5.1928
4.0544
5.8980
4.4205
2.6291
4.1198
2.9002
3.9447
4.7978
4.0510
6.1091
4.2583
5.4428
4.3143
TRI
7.5452
7.5452
8.2904
7.9172
9.6032
8.4763
7.2877
8.1779
3.1958
7.1626
12.5981
8.0499
5.1867
7.2385
PRI
-0.7103
-0.7103
-0.1136
-0.4124
1.5256
0.2295
-1.1795
-0.1247
-5.2726
-1.1761
3.5978
-0.3961
-3.6387
-1.2221
CASBI
T-Bill Index
Liquidity
Weight
Equal
Weight
SDL Index
CCIL Indices
94
CCIL
primary market
analysis
Primary Market Analysis

TABLE 9: SECURITIES & MONEY MARKET (PRIMARY): COMPARATIVE DATA
2013-14
2012-13
(upto November 2013) (upto November 2012)
2012-13
128
464000.00
14.32
8.28
120
474000.00
13.81
8.41
141
558000.00
13.60
8.36
Devolvements on PDs(F.V ` Crore)

Private Placements on RBI (F.V ` Crore)
Redemption (F.V ` Crore)
Net Borrowings(F.V ` Crore)
Total Borrowing (F.V ` Crore)
Budgeted Borrowing (F.V ` Crore)
% Completed of Total Borrowing
16836.16
74735.24
389264.76
464000.00
629008.84
73.77
1828.19
91378.79
382621.21
474000.00
569615.94
83.21
1828.19
90615.94
467384.06
558000.00
569615.94
97.96
Borrowing Under MSS

Total Outstanding (F.V. ` Crore)
MSS Ceiling (F.V. ` Crore)
Outstanding as percent of Ceiling (%)
0.00
50000.00
0.00
0.00
50000.00
0.00
0.00
50000.00
0.00
Purchases Under OMO

Dated Securities purchased under OMO
Amount of OMO dated securities purchased (F.V. ` Crore)
23
45057.67
18
54573.28
46
127179.74
2
2532.00
SDL
Total no of Issues
Gross Amount Borrowed (F.V ` Crore)
Weighted Average Coupon (%)
148
111705.75
8.94
141
111408.14
8.86
222
177278.62
8.80
Cash Management Bill

Amount (F.V ` Crore)
Weighted Average Cut -off (%)
107195.00
11.63
91 Day Treasury Bills

Amount (F.V Rs Crore)
398687.00
8.98
395465.76
8.27
542925.51
8.22
182 Day Treasury Bills

85103.48
8.85
85238.00
8.25
129434.08
8.17
364 Day Treasury Bill

Weighted Average Cut-off (%)
94844.38
8.54
90450.05
8.11
130470.80
8.05
8.75 (29-10-13)
4.00 (09-02-13)
6.75 (29-10-13)
7.75 (29-10-13)
7.16 - 10.53
9.00 (17-04-12)
4.25 (03-11-12)
7.00 (17-04-12)
8.00 (17-04-12)
7.34 - 9.32
8.50 (19-03-13)
4.00 (09-02-13)
6.50 (19-03-13)
7.50 (19-03-13)
7.34 - 13.69
Sale Under OMO

Dated Securities sold under OMO
Amount of OMO dated securities sold (F.V. ` Crore)
Buybacks
Auctions (F.V. ` Crore)
NDS-OM (F.V. ` Crore)
Benchmark Rates
Bank Rate(% p.a)(Effective Date)
CRR Rate (% p.a.)(Effective Date)
Reverse Repo Rate(%)(Effective Date)
Repo Rate (%) (Effective Date)
Call Money Range(%)
CCIL
GOI Borrowing
Total no of Issues (including reissues)
Gross Amount Borrowed Excluding MSS (F.V ` Crore)
Weighted Average Maturity (years)
Weighted Average Yield (%)
Dated Securities
95
primary market
analysis
TABLE 10: LIQUIDITY ANALYSIS

Amount ` Crore
Financial Year
Government Securities*
Gross
Borrowing
Redemption
Net Borrowing
Outstanding
Coupon
Payment
2006-07
195028.99
53295.84
141733.15
1181603.52
2007-08
194049.85
47937.53
146112.33
1434086.40
2008-09
277000.00
57697.89
219302.11
1706082.83
2009-10
428306.33
100937.22
327369.11
2033451.94
2010-11
437000.00
114323.25
322676.75
2349965.70
2011-12
510000.00
83975.48
426024.52
2782985.21
2012-13
558000.00
90615.94
467384.06
3244536.42
231643.31
2013-14 (Upto Nov 2013)
464000.00
74735.24
389264.76
3633801.19
177154.29
2006-07
20824.57
6550.85
14273.72
251072.27
2007-08
67778.59
11554.52
56224.07
302724.48
2008-09
118137.66
14371.33
103766.32
369290.70
2009-10
131121.69
16238.42
114883.27
517405.62
2010-11
104039.26
15641.19
88398.07
605803.69
2011-12
158632.30
21989.24
136643.06
742411.75
2012-13
177278.62
30621.75
146656.87
889068.62
46507.38
2013-14 (Upto Nov 2013)
111705.75
31536.56
80169.18
969237.80
46085.15
2006-07
220035.70
174367.69
45668.00
115473.69
2007-08
314495.65
347650.93
-33155.28
136139.95
2008-09
360912.12
329084.95
31827.17
150273.80
2009-10
385875.14
399148.80
-13273.66
137466.34
2010-11
355765.09
343438.33
12326.76
141326.90
2011-12
723813.16
498620.14
225193.02
267019.92
2012-13
802830.39
770087.16
32743.23
299764.15
2013-14 (Upto Nov 2013)
685829.86
529772.39
156057.47
348625.62
* including Special Securities and FRBs

State Development Loans**
** excluding Power Bonds
CCIL
Treasury Bills
96
Statistics
TABLE 11: CCIL SETTLEMENT DETAILS
Amount ` Crore
Repo
Outright
Settlement Period
Trades
Value
Avg.
Trades
Avg.
Val
Trades
Value
Avg.
Trades
Forex*
Avg. Val
Value
Avg.
Avg.
(USD
Trades
Trades (USD
Trades
Val
Million)
Million)
159
1496
1577 100232 136102
1101
CBLO**
Value
Avg.
Trades
Avg.
Val
2002-03
191843 1076147
646
3623
11672
468229
39
2003-04
243585 1575133
820
5303
20927
943189
71
3208
330517
501342
1425
2161
3060
2004-05
160682 1134222
550
3884
24364 1557907
83
5335
466327
899782
1976
3813
2005-06
125509
864751
467
3215
25673 1694509
88
5803
489649 1179688
2084
5020
2006-07
137100 1021536
562
4187
29008 2556501
99
8755
606808 1776981
2550
7466
2007-08
188843 1653851
765
6696
26612 3948751
91
13523
757074 3133665
3181
13167
113277
8110828
385
27588
2008-09
245964 2160233
1047
9192
24280 4094286
85
14266
837520 3758904
3657
16414
118941
8824784
414
30748
2009-10
316956 2913890
1332
12243
28651 6072829
101
21308
883949 2988971
3843
12996
142052 15541378
498
54531
2010-11
332540 2870952
1346
11623
27409 4099284
93
13943 1150037 4191037
4792
17463
145383 12259745
495
41700
2011-12
412266 3488203
1732
14656
29806 3763877
102
12934 1283178 4642573
5579
20185
143949 11155428
495
38335
2012-13
658055 6592032
2731
27353
41566 5402765
144
18695 1396138 4830933
6018
20823
156099 12028040
540
41620
852
16
76851
10
262
29351
976790
101
3345
67463
2953134
229
10045
85881
4732271
292
16096
Apr-13
87041 1021301
4836
56739
3931
603520
179
27433
120500
465667
6694
25870
12372
1298341
562
59015
May-13
147290 1912565
6695
86935
4949
763713
198
30549
139715
462444
6653
22021
13526
1217645
541
48706
Jun-13
76678
903288
3834
45164
4223
613400
169
24536
140218
402295
7011
20115
14317
1538959
573
61558
Jul-13
69722
718259
3169
32648
4159
670303
160
25781
142541
414482
6788
19737
17508
1976477
673
76018
Aug-13
41021
424780
2051
21239
3596
564856
144
22594
126481
356554
6324
17828
15864
1734095
635
69364
Sep-13
55768
579258
2788
28963
3710
617125
155
25714
129061
354639
6793
18665
15059
1668333
627
69514
Oct-13
63519
627706
3025
29891
4209
651575
168
26063
126883
366083
6344
18304
14285
1382101
571
55284
Nov-13
2013-14 (Upto
November 2013)
50539
499569
2660
26293
3692
539935
154
22497
110011
325595
6471
19153
13909
1249180
580
52049
591578 6686726
3652
41276
32469 5024428
166
25635 1035410 3147760
6637
20178
116840 12065130
596
61557
*Commenced operations from November 12, 2002, Cash and Tom settlement is with effect from February 5, 2004.
** Commenced operations from January 20, 2003.
statistics
97
CCIL
statistics
TABLE 12: CATEGORYWISE BUYING ACTIVITY

Percent
Outright
Reverse Repo
(Funds Lending)
CBLO
Lending
Uncollateralised Money
Market Lending*
Forex
Co-operative Banks
2.44
0.26
2.20
24.21
0.14
0.37
0.69
1.89
0.01
28.60
6.76
3.51
6.22
44.36
75.93
78.39
1.81
6.12
11.15
16.58
44.54
60.29
2.41
0.00
3.22
Primary Dealers
17.73
1.53
0.03
0.00
12.53
0.00
Private Sector Banks
12.92
6.15
2.14
6.22
20.78
10.60
21.61
Public Sector Banks
17.15
33.95
15.57
63.34
34.71
0.93
0.00
100.00
100.00
100.00
100.00 100.00
100.00
100.00
Category
Foreign Banks
Insurance Companies
Mutual Funds
Others
Total
IRSIRSMIBOR MIFOR
* Call and Term Money segment.
TABLE 13: CATEGORYWISE SELLING ACTIVITY

CCIL
98
Forex
Percent
IRSMIFOR
Outright
Repo
Co-operative Banks
1.98
2.27
1.77
1.76
0.16
0.08
0.00
4.04
0.01
Foreign Banks
31.21
42.40
19.88
15.33
44.25
72.27
48.80
Insurance Companies
1.15
0.00
0.06
Mutual Funds
16.03
0.00
1.81
Others
1.43
4.20
17.20
Primary Dealers
23.03
35.89
3.60
17.55
15.22
0.00
12.35
9.15
22.41
37.31
20.32
12.46
51.20
Public Sector Banks
12.74
6.10
29.24
28.06
35.26
0.05
0.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Category
Total
* Call and Term Money segment.
Uncollateralised Money
Market Borrowing*
IRSMIBOR
CBLO
Borrowing
TABLE 14: COMPARABLE RATES

Money Market Rates (WAR)
Date
Call
Repo
CBLO
Benchmark Rates
CCIL10Y
CCBOR
MIBOR
Benchmark
(10:00 A.M.)
(WAY)
(10:00 A.M.)
7.0611
8.7236
8.6557
8.4230
8.6203
8.7090
7.7417
7.8929
8.7807
8.0784
8.1696
8.8235
8.5247
8.5838
8.9144
8.7333
8.7597
9.0395
8.7480
8.7884
9.0413
8.7558
8.8178
9.0406
7.9365
8.8000
8.9394
8.7415
8.7650
9.0492
8.7403
8.7552
9.0187
8.7403
8.7609
9.0502
8.7413
8.7600
9.0839
8.7080
8.7484
9.0921
8.7072
8.7462
8.7398
8.7047
8.7518
8.7261
8.6356
8.7339
8.7063
8.5452
8.6792
8.7006
7.2527
7.7374
8.7239
-
Auction Cut-offs
91 DTB
182 DTB
364 DTB
8.5619
8.9807
8.9388
8.9388
-
8.7705
9.1206
-
8.9927
8.9332
-
Policy Rates
LAF
LAF Repo
Reverse
Repo
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
6.75
7.75
8.5900
7.6700
8.1100
7.9800
8.1900
8.5400
6.7700
8.6900
8.7200
8.7500
8.7300
8.0000
8.7100
8.7000
8.6900
8.6900
8.6800
7.4900
8.6900
8.6800
8.6400
8.0400
7.6200
5.4600
8.6253
8.4480
7.9427
8.1031
8.4948
8.7203
8.7527
8.7535
8.6521
9.1000
8.7200
8.7399
8.7458
8.7440
8.7009
8.7011
8.7122
8.6680
8.5507
7.7867
-
7.8824
5.1600
7.9026
7.9476
8.2814
8.6553
5.9374
8.7387
8.7504
8.7475
7.0000
8.1718
8.7270
8.7328
8.7373
8.7079
8.6576
8.1500
8.7165
8.6850
8.6283
8.2815
6.9946
5.2000
Average
8.2013
8.5831
7.9747
8.3957
8.6102
8.8860
8.8551
8.9456
8.9630
6.75
7.75
Max
8.7500
9.1000
8.7504
8.7558
8.8178
9.0921
8.9807
9.1206
8.9927
6.75
7.75
Min
5.4600
7.7867
5.1600
7.0611
7.7374
8.6557
8.5619
8.7705
8.9332
6.75
7.75
SD
0.7814
0.3078
1.1114
0.5301
0.3149
0.1611
0.1964
0.2476
0.0421
0.00
0.00
99
CCIL
statistics
1-Nov-13
2-Nov-13
5-Nov-13
6-Nov-13
7-Nov-13
8-Nov-13
9-Nov-13
11-Nov-13
12-Nov-13
13-Nov-13
14-Nov-13
16-Nov-13
18-Nov-13
19-Nov-13
20-Nov-13
21-Nov-13
22-Nov-13
23-Nov-13
25-Nov-13
26-Nov-13
27-Nov-13
28-Nov-13
29-Nov-13
30-Nov-13
statistics
GOVERNMENT SECURITIES MARKET

SETTLEMENT ANALYSIS
Number of Participants: 191
TABLE 15 : PROPRIETARY / CONSTITUENT SETTLEMENT ANALYSIS
Settlement Period
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
2013-14 (Upto November 2013)
Outright
Proprietary
Constituent
Trades
Value
Trades
Value
80.54
87.54
19.46
12.46
75.82
85.03
24.18
14.97
75.96
81.95
24.04
18.05
78.55
85.37
21.45
14.63
87.78
90.06
12.22
9.94
90.26
90.55
9.74
9.45
89.48
88.32
10.52
11.68
90.16
90.56
9.84
9.44
89.23
89.92
10.77
10.08
90.81
88.35
9.19
11.65
89.69
87.05
10.31
12.95
91.32
86.25
8.68
13.75
90.98
87.12
9.02
12.88
90.41
86.17
9.59
13.83
89.48
86.16
10.52
13.84
82.26
79.40
17.74
20.60
84.56
81.44
15.44
18.56
86.71
82.80
13.29
17.20
90.04
88.76
9.96
11.24
89.03
85.49
10.97
14.51
Repo
Proprietary
Constituent
Trades
Value
Trades
Value
99.58
99.81
0.42
0.19
88.11
89.96
11.89
10.04
81.83
86.21
18.17
13.79
70.00
82.77
30.00
17.23
70.67
85.01
29.33
14.99
70.74
83.79
29.26
16.21
72.60
87.98
27.40
12.02
81.01
94.03
18.99
5.97
80.58
89.37
19.42
10.63
81.39
88.46
18.61
11.54
90.89
92.91
9.11
7.09
92.83
94.50
7.17
5.50
93.23
95.51
6.77
4.49
92.97
94.85
7.03
5.15
90.67
93.81
9.33
6.19
89.32
92.82
10.68
7.18
91.32
94.25
8.68
5.75
93.13
93.72
6.87
6.28
93.15
93.37
6.85
6.63
92.15
94.16
7.85
5.84
TABLE 16: DEAL SIZE ANALYSIS
CCIL
Settlement Period
100
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
<5
% to
total
trades
10.22
12.23
14.24
15.26
8.30
5.30
5.69
5.35
6.34
5.32
4.21
2.66
2.20
2.56
3.62
7.92
5.28
3.92
4.42
3.54
Cr
% to
total
value
1.64
1.72
1.75
1.78
0.93
0.51
0.56
0.54
0.69
0.57
0.45
0.28
0.22
0.27
0.41
0.87
0.58
0.44
0.47
0.37
5 Cr
% to
% to
total
total
trades value
75.71
67.68
68.92
53.29
67.12
47.55
67.75
49.17
71.38
47.90
60.70
34.66
64.57
36.76
65.32
35.53
64.62
37.42
66.66
39.39
60.06
29.98
54.28
23.13
48.39
18.63
52.42
22.25
58.63
28.45
59.75
28.85
62.25
29.96
65.14
32.96
65.24
33.00
56.32
24.91
Percent
Percent
> 5 Cr <=10 Cr >10 Cr<=20 Cr

> 20
% to
% to
% to
% to
% to
total
total
total
total
total
trades value trades value trades
10.88
19.23
2.30
6.80
0.89
11.98
18.40
2.54
6.51
4.33
9.72
13.59
2.98
7.02
5.93
8.05
11.49
2.68
6.36
6.26
12.50
16.67
2.59
5.76
5.23
23.17
26.40
3.47
6.62
7.36
20.60
23.40
2.89
5.52
6.26
18.16
19.71
3.31
6.03
7.86
18.04
20.84
3.90
7.58
7.10
17.19
20.27
3.91
7.74
6.92
21.30
21.23
5.09
8.66
9.33
24.27
20.67
6.49
9.43
12.30
26.03
20.04
7.66
10.08
15.71
25.25
21.42
7.15
10.36
12.61
22.28
21.61
5.86
9.68
9.61
18.66
17.95
4.78
7.70
8.89
17.62
16.93
5.40
8.74
9.45
16.46
16.62
5.38
9.22
9.10
16.07
16.23
5.14
8.81
9.13
22.05
19.48
6.34
9.53
11.75
Cr
% to
total
value
4.65
20.09
30.09
31.20
28.75
31.81
33.76
38.20
33.46
32.03
39.68
46.49
51.03
45.70
39.85
44.62
43.78
40.76
41.49
45.70
statistics
TABLE 17: INSTRUMENT WISE BREAKUP OF OUTRIGHT TRADES

Amount ` Crore
State Development Loans
Volumes
Avg.
Volumes
%
Share
Volumes
Avg.
Volumes
%
Share
Volumes
2002-03
1032185
3475
95.91
37443
126
3.48
6519
22
0.61
2003-04
1458665
4911
92.61
102299
344
6.49
14169
48
0.90
2004-05
862820
2955
76.07
246703
845
21.75
24700
85
2.18
2005-06
657213
2443
76.00
189839
706
21.95
17700
66
2.05
2006-07
883248
4723
86.46
126956
679
12.43
11332
61
1.11
2007-08
1467704
5942
88.74
171914
696
10.39
14234
58
0.86
2008-09
1955412
8321
90.52
170436
725
7.89
34385
146
1.59
2009-10
2480850
10424
85.14
363283
1526
12.47
69757
293
2.39
2010-11
2552181
10333
88.90
275095
1114
9.58
43677
177
1.52
2011-12
3099108
13021
88.85
345237
1451
9.90
43859
184
1.26
2012-13
5920929
24568
89.82
552943
2294
8.39
118159
490
1.79
Apr-13
935699
51983
91.62
71689
3983
7.02
13914
773
1.36
May-13
1852003
84182
96.83
42917
1951
2.24
17646
802
0.92
Jun-13
844720
42236
93.52
46304
2315
5.13
12264
613
1.36
Jul-13
646106
29368
89.95
64739
2943
9.01
7413
337
1.03
Aug-13
307073
15354
72.29
103651
5183
24.40
14057
703
3.31
Sep-13
470541
23527
81.23
93993
4700
16.23
14724
736
2.54
Oct-13
538319
25634
85.76
76401
3638
12.17
12986
618
2.07
Nov-13
433209
22800
86.72
56185
2957
11.25
10175
536
2.04
6027670
37208
90.14
555877
3431
8.31
103178
637
1.54
Avg.
%
Volumes Share
Treasury Bills
CCIL
Cen. Govt. Dated Securities

Settlement Period
101
statistics
TABLE 18: TENOR WISE ACTIVITY - CENTRAL GOVERNMENT DATED SECURITIES

Percent
Year
Percent
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Nov-13 2013-14
0.06
1.82
1.31
0.04
2005
0.44
0.79
2.40
0.09
2006
0.32
0.49
2.01
2.04
0.20
2007
0.50
0.51
1.34
2.35
1.55
0.06
2008
3.58
2.73
2.04
2.06
1.44
0.31
0.00
2009
2.81
3.18
5.43
2.64
2.83
11.43
4.27
0.43
2010
5.14
4.20
10.39
12.56
2.91
6.29
3.50
3.38
0.59
2011
15.85
7.48
6.88
4.70
14.48
1.17
1.99
3.21
1.14
0.15
2012
21.42
12.04
4.66
8.19
4.27
0.56
1.04
2.94
2.38
0.82
0.05
2013
9.21
7.53
2.13
6.48
0.59
2.99
1.92
1.57
1.29
0.12
0.08
0.00
0.06
2014
0.44
5.51
6.04
12.79
6.12
1.49
6.75
10.24
0.82
0.12
0.07
0.76
0.20
2015
7.89
5.70
25.34
1.38
1.56
3.50
1.78
5.38
8.21
0.43
0.35
0.33
0.65
2016
2.98
0.88
2.07
0.26
32.66
1.00
1.63
13.70
5.12
0.80
0.13
0.24
0.25
2017
17.65
25.82
16.64
22.60
17.69
47.01
5.84
1.05
6.76
1.05
4.57
0.34
6.35
2018
0.51
6.96
3.73
1.38
0.14
0.08
42.75
0.15
0.04
6.55
1.56
0.03
1.90
2019
0.99
3.94
2.24
0.18
0.09
0.03
2.44
24.90
0.10
0.01
0.02
8.92
2.19
2020
0.06
3.75
1.73
0.10
0.10
0.01
0.02
19.27
32.76
1.56
7.77
9.64
4.62
2021
2.24
0.46
0.17
14.21
3.64
0.57
3.71
4.92
0.03
53.20
8.26
0.09
0.77
2022
2.77
2.66
1.44
1.13
0.52
5.82
1.56
1.43
35.55
13.87
25.16
0.09
17.03
2023
2.38
1.33
0.10
0.07
0.67
2.27
0.53
0.08
0.07
0.01
47.48
17.86
2024
0.01
0.69
1.08
1.24
0.19
17.58
12.68
0.05
1.29
2025
0.16
1.30
0.30
0.05
0.01
10.78
1.18
17.07
2026
2.22
0.22
0.08
0.08
0.00
0.22
0.74
0.80
0.38
0.14
21.30
0.58
20.87
2027
0.04
0.67
2.97
2.35
2.95
1.31
0.86
26.72
4.16
2028
1.14
0.98
0.09
0.06
0.03
0.04
0.01
0.01
0.00
0.00
0.00
0.00
2029
0.00
0.00
0.00
0.00
2030
0.95
3.88
0.93
2.44
0.40
2004
2031
0.00
0.00
0.00
0.00
2032
0.74
0.29
0.30
0.35
0.27
2.46
7.71
0.62
0.72
0.27
0.31
1.60
0.95
2033
0.00
0.00
0.00
0.00
2034
0.59
1.69
4.18
0.02
0.75
0.86
0.03
0.00
0.01
0.00
0.02
2035
2.55
0.08
0.01
0.26
0.26
0.01
0.00
0.00
0.01
0.10
2036
4.50
12.75
3.07
0.10
0.04
0.00
0.45
0.00
0.04
2037
0.00
0.00
0.00
0.00
2038
0.00
0.00
0.00
0.00
2039
0.63
0.38
0.00
0.00
0.00
0.00
0.00
2040
0.75
0.62
0.11
0.00
0.03
2041
0.36
1.34
0.52
0.70
CCIL
2003
2042
0.25
0.49
0.43
102
Total
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
statistics
NETTING FACTOR
Netting Factor denotes the extent of actual reduction achieved through multi-lateral offsetting of individual member
fund obligations (arising out of every trade) to a single net fund obligation. This process has significantly reduced
individual funding requirements for every member and also achieved reduction in market liquidity risk.
TABLE 19: NETTING FACTOR: FUNDS
Amount ` Crore
Settlement Period
Gross
Net
Netting Factor(%)
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2324017
4038385
4582506
4460523
6275182
9646481
10756665
15502457
11233653
10996999
17585265
653519
979592
1037355
905062
968185
1596638
1674892
2642001
2561298
2191680
3101477
71.88
75.74
77.36
79.71
84.57
83.45
84.43
82.96
77.20
80.07
82.36
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
2259001
3606734
2217646
1991334
1500787
1749375
1855848
1499640
16680367
400804
427103
378685
378470
398366
375461
307775
291044
2957708
82.26
88.16
82.92
80.99
73.46
78.54
83.42
80.59
82.27
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Gross
Net
4250540
4384775
6123933
9536455
10365006
15056277
11078385
11011992
17395376
2207860
3415589
2140972
1975699
1548096
1815066
1921374
1560163
16584818
2462556
2012523
2418739
3776777
3750501
6461619
4883399
4139464
6568929
789856
957925
826715
794422
789780
843283
794093
670655
6466728
Amount ` Crore
Netting Factor(%)
42.06
54.10
60.50
60.40
63.82
57.08
55.92
62.41
62.24
64.23
71.95
61.39
59.79
48.98
53.54
58.67
57.01
61.01
CCIL
Settlement Period
TABLE 20: NETTING FACTOR: SECURITIES
103
statistics
104
CCIL
TABLE 21: LIQUIDITY ANALYSIS FOR CENTRAL GOVERNMENT SECURITIES TRANSACTED DURING THE MONTH
Sr.
No.
Security
Value
Percent
traded in
No. of
Days
share in
Trades
Maturity traded (in last 12
last 12
(November
last 12
months
Date
months
(FV in
months)
2013)
Value
` Crore)
Value for
November 2013 (FV in
` Crore)
Average Daily Average Daily

Trading
Percent
Trading
Outstanding
Value in
share in
Turnover Value in last
(FV in
(November
12 months November Ratio*
` Crore)
(FV in
2013)
2013 (FV in
` Crore)
` Crore)
7.16% G.S. 2023
20-May-23
131
1035975
11.88
19379
169527
39.13
77000
220
7908
9418
8.28% G.S. 2027
21-Sep-27
193
249711
2.86
12257
114711
26.48
68252
168
1294
6037
8.12% G.S. 2020
10-Dec-20
235
281932
3.23
4410
41317
9.54
65000
64
1200
2175
7.28% G.S. 2019
03-Jun-19
119
131319
1.51
3759
38577
8.90
40000
96
1104
2030
8.83% G.S. 2023
25-Nov-23
35351
0.41
4361
35351
8.16
7000
505
7070
7070
8.32% G.S. 2032
02-Aug-32
184
36609
0.42
840
5582
1.29
57434
10
199
294
8.20% G.S. 2025
24-Sep-25
240
1581467
18.14
739
5100
1.18
90000
6589
268
9.20% G.S. 2030
30-Sep-30
40
10866
0.12
425
3541
0.82
11000
32
272
197
6.07% G.S. 2014
15-May-14
115
10423
0.12
72
2425
0.56
40000
91
202
10
8.83% G.S. 2041
12-Dec-41
227
85867
0.99
227
2251
0.52
89000
378
132
11
8.33% G.S. 2026
09-Jul-26
239
1921127
22.04
370
2206
0.51
90000
8038
123
12
8.30% G.S. 2042
31-Dec-42
177
40644
0.47
139
2140
0.49
49000
230
134
13
8.28% G.S. 2032
15-Feb-32
216
24448
0.28
216
1338
0.31
90687
113
79
14
8.24% G.S. 2027
15-Feb-27
104
3370
0.04
81
1046
0.24
63389
32
349
15
1.44% IIB 2023
05-Jun-23
54
4940
0.06
45
830
0.19
6000
14
91
104
16
6.72% G.S. 2014
24-Feb-14
27
1813
0.02
26
825
0.19
15274
67
92
17
8.07% G.S. 2017 (JUL)
03-Jul-17
234
540185
6.20
46
737
0.17
50000
2308
57
18
7.17% G.S. 2015
14-Jun-15
200
41126
0.47
60
618
0.14
56000
206
48
19
7.02% G.S. 2016
17-Aug-16
86
8356
0.10
10
600
0.14
60000
97
150
20
6.49% G.S. 2015
08-Jun-15
64
5062
0.06
21
487
0.11
40000
79
61
21
8.97% G.S. 2030
05-Dec-30
239
254006
2.91
177
475
0.11
90000
1063
25
22
8.19% G.S. 2020
16-Jan-20
192
124681
1.43
53
446
0.10
74000
649
45
TABLE 21: LIQUIDITY ANALYSIS FOR CENTRAL GOVERNMENT SECURITIES TRANSACTED DURING THE MONTH (Contd.)
Sr.
No.
Security
Value
Percent
No. of
Days
traded in
share in
Trades
last 12
last 12
(November
months
Date
months
(FV in
2013)
months)
Value
` Crore)
Value for
` Crore)

Percent
Trading
Trading
Outstanding
share in
Value in
(FV in
(November
Ratio*
12 months November ` Crore)
2013)
(FV in
2013 (FV in
` Crore)
` Crore)
7.59% G.S. 2016
12-Apr-16
130
9358
0.11
17
437
0.10
68000
72
44
24
8.07% G.S. 2017
15-Jan-17
122
6599
0.08
16
412
0.10
69000
54
82
25
8.15% G.S. 2022
11-Jun-22
228
1815059
20.82
38
324
0.07
83000
7961
27
26
7.38% G.S 2015
03-Sep-15
61
2166
0.02
310
0.07
63000
36
78
27
6.90% OMC SB 2026
04-Feb-26
97
4011
0.05
44
286
0.07
21942
41
36
28
8.79% G.S. 2021
08-Nov-21
166
48834
0.56
17
243
0.06
83000
294
35
29
9.15% G.S. 2024
14-Nov-24
214
127295
1.46
48
217
0.05
92000
595
18
30
7.99% G.S. 2017
09-Jul-17
114
9430
0.11
200
0.05
71000
83
50
31
7.80% G.S. 2021
11-Apr-21
169
20893
0.24
12
135
0.03
68000
124
27
32
7.49% G.S. 2017
16-Apr-17
101
2595
0.03
112
0.03
58000
26
56
33
7.83% G.S.2018
11-Apr-18
223
129812
1.49
14
109
0.03
73000
582
16
34
8.13% G.S. 2022
21-Sep-22
148
10812
0.12
71
0.02
70495
73
18
35
6.90% G.S. 2019
13-Jul-19
40
655
0.01
50
0.01
45000
16
13
36
7.40% G.S. 2035
09-Sep-35
109
6144
0.07
43
0.01
52000
56
11
37
7.95% OMC SB 2025
18-Jan-25
28
434
0.00
30
0.01
11257
16
30
38
10.79% G.S. 2015
19-May-15
26
0.00
25
0.01
2683
25
39
7.37% G.S. 2014
16-Apr-14
37
469
0.01
15
0.00
42000
13
40
6.05% G.S. 2019
02-Feb-19
28
433
0.00
15
0.00
53000
15
15
41
7.46% G.S 2017
28-Aug-17
73
793
0.01
10
0.00
57887
11
42
10.47% G.S. 2015
12-Feb-15
22
0.00
10
0.00
6430
10
43
6.25% G.S 2018
02-Jan-18
51
213
0.00
0.00
16887
44
8.26% G.S. 2027
02-Aug-27
153
7374
0.08
0.00
73427
48
105
CCIL
statistics
23
statistics
106
CCIL
TABLE 21: LIQUIDITY ANALYSIS FOR CENTRAL GOVERNMENT SECURITIES TRANSACTED DURING THE MONTH (Contd.)
Sr.
No.
Security
Value
traded in
Days
last 12
months
Date
(FV in
months)
` Crore)
Percent
No. of
share in
Trades
last 12
(November
months
2013)
Value
Value for
` Crore)

Trading
Percent
Trading
Outstanding
Value in
share in
(FV in
(November
12 months November Ratio*
` Crore)
2013 (FV in
2013)
(FV in
` Crore)
` Crore)
45
6.35% G.S 2020
02-Jan-20
101
3396
0.04
0.00
61000
34
46
10.00% G.S. 2014
30-May-14
21
50
0.00
0.00
2333
47
10.50% G.S. 2014
29-Oct-14
17
32
0.00
0.00
1755
48
8.08% G.S. 2022
02-Aug-22
144
15970
0.18
0.00
61969
111
49
6.35% OMC SB 2024
23-Dec-24
67
3383
0.04
0.00
22000
50
50
6.17% G.S. 2023
12-Jun-23
25
106
0.00
0.00
14000
51
7.95% G.S 2032
28-Aug-32
93
986
0.01
0.00
59000
11
52
7.95% FERT SB 2026
18-Feb-26
52
406
0.00
0.00
3551
53
8.15% FCI SB 2022
16-Oct-22
27
53
0.00
0.00
5000
54
8.20% OMC SB 2024
15-Sep-24
32
97
0.00
0.00
10306
55
11.50% G.S. 2015
21-May-15
16
39
0.00
0.00
3560
56
Other Securities Traded During

The Past 12 Months But Not
Traded During The Month
60011
0.69
8717234
100.00
47997
433211
100.00
Total
*Turnover Ratio has been calculated as trading value as a percentage of outstanding of respective security.
statistics
TABLE 22: MARKET SHARE OF TOP 'N' SECURITIES

Top 10
Top 15
Top 20
39.01
57.30
70.28
79.43
2004-05
49.97
66.31
74.56
80.36
2005-06
63.75
82.82
89.67
92.85
2006-07
74.88
88.82
92.37
94.88
2007-08
66.35
83.84
92.54
95.79
2008-09
61.07
73.89
81.92
87.35
2009-10
60.71
79.08
86.48
90.54
2010-11
71.77
88.33
93.91
96.39
2011-12
85.51
94.15
97.07
98.68
2012-13
77.59
94.68
97.63
98.70
Apr-13
83.37
95.95
98.13
98.96
May-13
86.01
95.38
97.83
98.79
Jun-13
87.26
94.57
97.05
98.09
Jul-13
86.20
94.59
97.20
98.47
Aug-13
87.92
95.58
98.35
99.41
Sep-13
87.99
96.24
98.27
99.20
Oct-13
90.84
96.32
98.75
99.48
Nov-13
92.21
96.58
98.32
99.08
77.87
92.03
95.81
97.89
TABLE 23: MARKET SHARE OF MEMBERS IN OUTRIGHT SETTLEMENT

Settlement Period
Top 5
Top 10
Top 15
Percent
Top 20
2002-03
20.17
32.59
42.33
50.14
2003-04
19.02
31.58
40.63
48.49
2004-05
21.20
35.51
46.10
54.37
2005-06
21.84
37.47
49.11
57.64
2006-07
28.93
45.34
57.08
65.89
2007-08
27.42
43.65
56.17
65.31
2008-09
28.33
45.51
57.23
65.63
2009-10
28.74
44.32
55.32
63.35
2010-11
34.01
49.31
59.66
67.17
2011-12
30.04
47.85
60.10
68.81
2012-13
31.30
48.48
59.42
67.31
Apr-13
33.65
48.67
58.50
66.01
May-13
32.89
50.36
61.11
68.26
Jun-13
31.65
47.22
58.13
66.84
Jul-13
30.98
46.76
57.73
65.41
Aug-13
33.37
49.14
59.32
67.57
Sep-13
34.63
51.62
60.85
68.19
Oct-13
32.81
48.96
58.03
65.35
Nov-13
30.44
46.95
58.14
66.91
32.63
48.94
59.30
66.99
Top 5
2003-04
CCIL
Period
Percent
107
statistics
TABLE 24: MARKET SHARE OF TOP FIVE MEMBERS (CATEGORYWISE)

Categories
No of Members
Cooperative
Banks
48
Foreign
Banks
36
Public Sector
Private
Banks
Sector Banks
27
19
Mutual
Funds
30
Percent
Primary
Dealers
8
2002-03
87.04
75.91
41.44
50.65
59.76
62.00
2003-04
76.72
75.48
43.88
53.33
55.47
62.96
2004-05
82.30
77.94
51.20
69.12
56.99
61.90
2005-06
75.10
77.91
53.45
71.55
56.49
56.95
2006-07
77.20
76.04
52.57
73.68
68.00
72.44
2007-08
86.70
74.99
55.29
73.01
70.20
86.20
2008-09
82.16
76.26
52.53
76.79
66.10
86.83
2009-10
72.08
79.86
47.99
79.61
64.19
82.44
2010-11
62.05
83.05
48.99
74.60
66.49
84.80
2011-12
61.15
75.91
51.48
74.43
68.01
82.38
2012-13
55.50
77.32
48.92
83.43
65.36
82.08
Apr-13
54.43
80.45
42.21
86.77
65.35
81.82
May-13
56.15
82.29
46.32
86.06
68.73
87.27
Jun-13
55.17
83.47
46.65
86.14
70.81
86.03
Jul-13
54.26
81.15
50.99
81.16
63.77
89.24
Aug-13
57.43
81.91
51.98
91.57
57.55
84.91
Sep-13
60.51
78.65
41.06
91.72
59.95
85.68
Oct-13
56.96
79.11
39.39
88.39
62.70
81.34
Nov-13
49.54
78.72
40.97
87.66
71.85
84.19
55.71
81.08
45.33
86.71
65.42
85.35
TRADING ANALYSIS
TABLE 25: TRADING PLATFORM ANALYSIS OF OUTRIGHT TRADES Amount ` Crore
OTC
Value
NDS-OM
% Share
% Share
Trades
Value
% Share
% Share
220890
49.64
43.02
2005-06
38809
292515
50.36
56.98
38251
2006-07
35322
368704
25.79
36.11
101641
652270
74.21
63.89
2007-08
31020
453226
16.43
27.42
157823
1199919
83.57
72.58
Trades
2008-09
35288
613229
14.35
28.36
210585
1548906
85.65
71.64
2009-10
40736
798397
12.87
27.41
275769
2113896
87.13
72.59
2010-11
42710
622558
12.85
21.73
289636
2241886
87.15
78.27
2011-12
44908
731938
10.89
20.96
367495
2760795
89.11
79.04
2012-13
57757
1179701
8.79
17.91
599316
5408334
91.21
82.09
Apr-13
4770
147561
5.19
13.70
87077
929259
94.81
86.30
May-13
6616
191181
4.58
10.15
137892
1691531
95.42
89.85
Jun-13
4223
127548
5.48
14.16
72850
773525
94.52
85.84
Jul-13
4371
111540
6.57
16.30
62157
572715
93.43
83.70
Aug-13
5264
126766
12.54
29.08
36704
309120
87.46
70.92
Sep-13
5190
130964
9.41
22.85
49987
442272
90.59
77.15
CCIL
Period
Oct-13
4573
112696
7.20
17.96
58963
514802
92.80
82.04
4081
94134
8.03
18.62
46738
411503
91.97
81.38
39088
1042391
6.61
15.59
552368
5644726
93.39
84.41
Nov-13
108
statistics
TABLE 26A: WHEN-ISSUED TRADING DETAILS

Amount ` Crore
Security Description
Maturity Date
Trades
Value
8.12% G.S. 2020
10-Dec-20
10
50
8.83% G.S. 2023
25-Nov-23
58
395
8.24% G.S. 2027
15-Feb-27
92
965
8.28% G.S. 2027
21-Sep-27
35
195
195
1605
Total
TABLE 26B: WHEN-ISSUED TRADING - HISTORICAL

Amount ` Crore
Period
Trades
Value
2006-07
154
1270
2007-08
169
1530
2008-09
335
3000
2009-10
320
3180
2010-11
306
2715
2011-12
391
2985
2012-13
1586
11805
Apr-13
173
1220
May-13
75
565
Jun-13
87
855
Jul-13
144
1080
Aug-13
255
1830
Sep-13
78
805
Oct-13
124
900
Nov-13
195
1605
1131
8860
Category
Trades
Sell
Value
Trades
Value
Co-operative Banks
4.07
2.39
3.83
1.96
0.86
0.57
0.12
0.09
24.87
28.11
26.91
30.65
1.71
2.11
1.43
1.30
12.62
17.73
14.98
17.21
Foreign Banks
Insurance Companies
Mutual Funds
Others
Primary Dealers
Provident Funds
Public Sector Banks
1.45
1.55
1.03
1.44
20.85
18.47
22.71
23.27
9.19
10.04
9.28
10.19
0.19
0.65
0.00
0.00
24.18
18.38
19.71
13.87
CCIL
Percent
Buy
TABLE 27: MARKET SHARE IN PROPRIETARY TRADES*
* Trade Data
109
statistics
TABLE 28: MARKET SHARE IN CONSTITUENT TRADES*

Percent
Constituent Category
Buy
Sell
Trades
Value
Banks
Trades
0.00
Value
0.00
0.06
0.13
Co-operative Banks
19.66
5.79
8.75
2.15
Corporates
12.48
38.79
26.13
51.22
3.04
11.87
2.88
7.22
FIIs
Insurance Companies
12.28
12.63
7.67
8.60
Mutual Funds
2.96
2.05
4.22
2.94
Finance Cos.
21.20
13.26
35.91
16.13
Others
1.03
0.53
0.13
0.01
Primary Dealers
2.96
2.62
6.65
5.63
Provident Funds
24.40
12.46
7.60
5.97
*Trade data
TABLE 29: TURNOVER RATIO

Percent
Current Month
1.34%
Previous Month
3 Months
1.52%
6 Months
0.97%
12 Months
5.31%
1.11%
TABLE 30: NET MARKET ACTIVITY IN G-SEC TRADING

Percent
Foreign
Banks
-15.08
Mutual
Funds
4.35
5-Nov-13
-3.96
6-Nov-13
-10.81
7-Nov-13
-2.78
Date
3.57
-0.13
-0.92
-3.23
-0.31
8.55
0.90
1.81
-2.96
3.75
7.31
0.13
1.99
-4.00
-0.64
5.30
8-Nov-13
-4.43
1.19
8.07
-14.14
5.36
3.95
11-Nov-13
-5.16
5.79
0.84
-0.95
-3.08
2.56
12-Nov-13
-3.28
-1.94
1.04
-3.70
2.63
5.25
Private Sector Public Sector

Banks
Banks
10.57
3.48
13-Nov-13
-1.20
-5.71
-0.47
3.58
3.75
0.04
14-Nov-13
-0.02
4.29
1.74
-7.27
-3.07
4.33
18-Nov-13
3.50
-2.50
2.99
-0.58
1.78
-5.18
19-Nov-13
4.24
-3.28
0.19
-0.66
1.06
-1.55
20-Nov-13
-3.95
0.32
1.04
-0.36
-2.68
5.62
21-Nov-13
-5.38
-2.73
0.80
-3.59
1.41
9.49
22-Nov-13
4.78
-5.49
5.13
-8.54
2.37
1.76
25-Nov-13
-3.01
-0.54
0.67
-1.65
-5.71
10.24
26-Nov-13
2.75
-5.29
0.42
-1.65
0.11
3.65
27-Nov-13
-1.10
0.50
0.54
1.68
-1.26
-0.35
28-Nov-13
-4.76
-0.88
2.26
-0.78
-2.81
6.97
CCIL
1-Nov-13
Primary
Dealers
-6.88
Others
29-Nov-13
-3.44
-0.54
3.92
-8.96
2.56
6.46
Net Activity in Nov-13
-2.52
-0.82
1.83
-3.22
0.93
3.81
110
TABLE 31: TRADING SUMMARY

Amount ` Crore
Date
1-Nov-13
SDL
Central Government
Trades
2166
Value
28171
Trades
17
T-Bills
Value
152
Trades
45
Total
Value
1320
Trades
2228
Repo
Value
29644
2-Nov-13
Trades
CBLO
Value
Trades
Forex*
Value
297
48046
524
28602
128
8327
Trades
Value
5276
17587
5-Nov-13
1376
11876
54
665
100
4880
1530
17421
199
34043
709
70078
4744
17789
6-Nov-13
2114
18679
67
353
127
4711
2308
23743
181
27641
700
65948
5345
16733
7-Nov-13
2438
19751
87
1049
75
3346
2600
24145
164
24465
729
63677
3604
13600
8-Nov-13
1885
19502
69
751
27
867
1981
21121
168
24284
706
53303
5487
15942
213
10954
9-Nov-13
11-Nov-13
2756
22709
54
422
27
1031
2837
24163
166
23246
637
54852
12-Nov-13
2563
21303
75
484
48
1908
2686
23696
159
23377
626
53755
9610
20881
13-Nov-13
3785
32047
69
349
105
4612
3959
37009
179
23441
647
62370
6004
14751
14-Nov-13
2413
22505
30
137
41
1887
2484
24530
360
50408
546
31847
193
4628
600
193
8057
16-Nov-13
18-Nov-13
1277
10596
51
325
29
520
1357
11441
166
23593
701
70301
12490
26739
19-Nov-13
3650
34485
111
2529
46
1628
3807
38642
170
22236
711
71872
5794
15988
20-Nov-13
2459
21828
106
815
113
5082
2678
27726
186
25310
766
75442
5577
15211
21-Nov-13
1745
13207
86
512
66
1087
1897
14806
162
23673
726
75880
6144
15676
22-Nov-13
2506
27163
65
216
56
2274
2627
29653
168
22513
785
75739
5825
12920
150
7370
25-Nov-13
2529
22362
32
194
79
3929
2640
26486
150
19730
731
76793
5935
13837
26-Nov-13
3824
33205
56
259
55
2774
3935
36238
148
21348
742
80584
5116
12023
27-Nov-13
3037
26846
73
349
146
6008
3256
33203
154
22707
746
83088
5658
13854
28-Nov-13
3162
26856
63
403
88
5432
3313
32691
181
27728
794
80833
29-Nov-13
2599
26766
43
274
54
2243
2696
29282
332
51544
521
27424
17209
77434
178
12083
23-Nov-13
30-Nov-13
Total
48284
111
CCIL
1208
10237
1327
55540
50819
505637
3692
539935
13909
1249180
110011
325595
23151
64
539
70
2923
2675
26612
154
22497
580
52049
6471
19153
86.99
2.38
2.02
2.61
10.98
statistics
Average
2541
Market
95.01
Share (%)
*Amount in USD Million
439861
statistics
112
CCIL
TABLE 32: G-SEC TRADING ANALYSIS

Amount ` Crore
Date
1-Nov-13
Total (Gilts)
Brokered Deals (Gilts)
NDS-OM (Gilts)
OTC (Gilts)
No. of
Market
No. of
Market
No. of
Market
No. of
Value
Trades
Value
Trades
Value
Trades
Trades
Value
Securities
Share (%)
Securities
Share (%)
Securities
Share (%)
Securities
6.51
23
2166
1833
6
59
28171
19
17
1987
8953
179
19218
31.78
68.22
5-Nov-13
49
13
1051
8.85
1327
14
10825
91.15
19
510
4.29
1376
17
11876
6-Nov-13
109
17
1661
8.89
2005
21
17019
91.11
26
10
573
3.07
2114
26
18679
7-Nov-13
107
15
1101
5.57
2331
21
18649
94.43
156
0.79
2438
27
19751
8-Nov-13
213
19
6471
33.18
1672
19
13031
66.82
32
10
1485
7.61
1885
24
19502
11-Nov-13
151
14
2142
9.43
2605
18
20567
90.57
22
831
3.66
2756
20
22709
12-Nov-13
152
16
2782
13.06
2411
16
18521
86.94
29
1827
8.58
2563
19
21303
13-Nov-13
144
18
2240
6.99
3641
17
29808
93.01
27
1127
3.52
3785
22
32047
14-Nov-13
142
17
2907
12.92
2271
17
19598
87.08
19
870
3.87
2413
21
22505
18-Nov-13
109
13
1598
15.08
1168
15
8998
84.92
26
723
6.82
1277
17
10596
19-Nov-13
149
13
3836
11.12
3501
19
30649
88.88
41
2060
5.97
3650
20
34485
20-Nov-13
120
16
1591
7.29
2339
15
20237
92.71
28
877
4.02
2459
21
21828
21-Nov-13
109
18
1153
8.73
1636
18
12054
91.27
15
585
4.43
1745
21
13207
22-Nov-13
183
18
5154
18.97
2323
14
22009
81.03
25
10
700
2.58
2506
20
27163
25-Nov-13
120
18
1614
7.22
2409
21
20748
92.78
26
10
861
3.85
2529
22
22362
26-Nov-13
161
20
2570
7.74
3663
24
30636
92.26
44
14
1252
3.77
3824
27
33205
27-Nov-13
94
18
754
2.81
2943
19
26092
97.19
19
425
1.58
3037
23
26846
28-Nov-13
162
22
1575
5.86
3000
18
25282
94.14
17
353
1.31
3162
25
26856
29-Nov-13
181
17
5127
19.16
2418
21
21638
80.84
35
1470
5.49
2599
24
26766
Total
Average
Percent
Market Share
2634
139
17
54281
45650
2857
2403
12.34
18
385580
518
20294
27
87.66
18517
48284
975
2541
4.21
439861
22
23151
TABLE 33: T-BILL TRADING ANALYSIS

Amount ` Crore
Trades
No. of
Securities
Value
Market
Share (%)
Trades
No. of
Securities
Value
Total (T-Bills)
Brokered Deals (T-Bills)
NDS-OM (T-Bills)
OTC (T-Bills)
Date
Market
Share (%)
Trades
No. of
Securities
Value
Market
Share (%)
Trades
No. of
Securities
Value
1-Nov-13
20
11
661
50.06
25
10
659
49.94
221
16.72
45
16
1320
5-Nov-13
19
12
1545
31.66
81
22
3335
68.34
11
1330
27.25
100
27
4880
6-Nov-13
38
13
1616
34.30
89
19
3095
65.70
470
9.98
127
24
4711
7-Nov-13
23
11
1276
38.13
52
13
2070
61.87
337
10.09
75
15
3346
8-Nov-13
14
572
65.92
13
296
34.08
235
27.13
27
15
867
11-Nov-13
17
11
931
90.30
10
100
9.70
540
52.35
27
14
1031
12-Nov-13
20
12
1143
59.91
28
765
40.09
697
36.52
48
16
1908
13-Nov-13
55
10
3057
66.28
50
17
1555
33.72
10
639
13.86
105
21
4612
14-Nov-13
25
14
1618
85.72
16
270
14.28
658
34.86
41
16
1887
18-Nov-13
168
32.29
20
15
352
67.71
149
28.70
29
18
520
19-Nov-13
10
432
26.56
36
11
1196
73.44
280
17.20
46
18
1628
20-Nov-13
69
18
4022
79.14
44
15
1060
20.86
14
12
1443
28.39
113
23
5082
21-Nov-13
28
10
367
33.75
38
10
720
66.25
100
9.17
66
14
1087
22-Nov-13
21
11
1434
63.06
35
10
840
36.94
10
820
36.06
56
16
2274
25-Nov-13
27
16
2394
60.92
52
14
1536
39.08
13
10
1585
40.34
79
24
3929
26-Nov-13
18
12
984
35.49
37
15
1790
64.51
832
30.00
55
20
2774
27-Nov-13
82
15
4545
75.65
64
21
1463
24.35
11
1178
19.60
146
27
6008
28-Nov-13
44
18
4182
76.99
44
17
1250
23.01
14
13
1797
33.08
88
26
5432
29-Nov-13
13
990
44.14
41
16
1253
55.86
315
14.05
54
18
2243
Total
552
Average
29
Percent Market
Share
775
1681
41
57.50
13
23602
150
1242
8
42.50
13626
1327
717
70
55540
19
2923
24.53
statistics
113
CCIL
12
31937
statistics
114
CCIL
TABLE 34: SDL TRADING ANALYSIS

Amount ` Crore
Total (SDLs)
Brokered Deals (SDLs)
NDS-OM (SDLs)
OTC (SDLs)
Market
Share
(%)
-
52.33
27.44
15
187
24.86
137
32.38
12
59
12.25
11
15
80
23.00
60
43.75
95.34
15
93.10
15
174
74.32
30
11
337
65.93
21
196
90.56
10
80
41.05
18
178
68.76
56
14
256
28-Nov-13
43
20
29-Nov-13
24
Market
Share
(%)
4.18
76.62
12
155
23.38
168
47.67
21
185
761
72.56
35
11
288
19
565
75.14
26
10
14
285
67.62
20
61
15
425
87.75
14
13-Nov-13
54
22
269
77.00
14-Nov-13
27
10
77
56.25
18-Nov-13
44
22
309
19-Nov-13
96
19
2354
20-Nov-13
76
21
606
21-Nov-13
65
16
22-Nov-13
59
12
25-Nov-13
20
26-Nov-13
39
27-Nov-13
1-Nov-13
14
146
Market
Share
(%)
95.82
5-Nov-13
42
15
509
6-Nov-13
46
14
7-Nov-13
52
15
8-Nov-13
43
11-Nov-13
34
12-Nov-13
Date
Total
Average
Percent
Market Share
Trades
No. of
Securities
895
47
15
Value
Trades
No. of
Securities
Value
Trades
No. of
Securities
Value
Trades
No. of
Securities
Value
17
152
54
17
665
20
5.64
67
18
353
375
35.74
87
22
1049
259
34.43
69
30
751
140
33.19
54
19
422
260
53.75
75
26
484
50
14.32
69
25
349
30
10
137
4.66
51
26
325
6.90
95
3.76
111
21
2529
209
25.68
15
1.84
106
24
815
174
34.07
86
18
512
20
9.44
78
35.92
65
14
216
12
115
58.95
25
12.86
32
11
194
17
81
31.23
50
19.34
56
20
259
73.53
17
92
26.47
120
34.41
73
17
349
215
53.36
20
188
46.64
63
21
403
179
65.60
19
94
34.40
50
18.28
43
20
274
7916
313
417
16
77.33
2321
72
122
4
22.67
1536
1208
81
64
15.01
10237
19
539
statistics
TABLE 35: LIQUIDITY OF TRADES GREATER THAN `5 CRORE (G-SEC)

ISINDESC
No. of
Trades
Value
(` Cr.)
7.16% G.S. 2023
18949
167255
38.15
18
18
8.28% G.S. 2027
12122
115143
26.26
19
19
8.12% G.S. 2020
4423
42360
9.66
19
19
8.83% G.S. 2023
4835
38946
8.88
7.28% G.S. 2019
3583
37249
8.50
18
18
8.32% G.S. 2032
583
5404
1.23
19
19
8.20% G.S. 2025
569
4739
1.08
19
19
8.24% G.S. 2027
251
4698
1.07
9.20% G.S. 2030
369
4025
0.92
18
14
10
8.83% G.S. 2041
184
2874
0.66
15
11
11
6.07% G.S. 2014
74
2440
0.56
13
12
8.30% G.S. 2042
115
2129
0.49
16
13
8.33% G.S. 2026
251
2093
0.48
18
16
14
6.72% G.S. 2014
31
890
0.20
10
15
8.28% G.S. 2032
104
827
0.19
12
16
1.44% IIB 2023
45
810
0.18
17
7.17% G.S. 2015
67
744
0.17
18
7.02% G.S. 2016
12
710
0.16
19
8.07% G.S. 2017 (JUL)
39
605
0.14
10
20
6.49% G.S. 2015
19
481
0.11
21
8.19% G.S. 2020
51
465
0.11
10
22
7.59% G.S. 2016
15
435
0.10
23
8.07% G.S. 2017
410
0.09
24
8.97% G.S. 2030
47
388
0.09
11
25
8.15% G.S. 2022
39
375
0.09
11
26
7.38% G.S 2015
310
0.07
27
6.90% OMC SB 2026
37
269
0.06
28
8.79% G.S. 2021
10
250
0.06
29
7.99% G.S. 2017
200
0.05
30
7.56% G.S. 2014
175
0.04
31
7.80% G.S. 2021
12
135
0.03
32
7.49% G.S. 2017
110
0.03
33
7.83% G.S.2018
95
0.02
Days
Traded
Days Traded with 5

trades or more per day
Days Traded with less

than 5 trades per day
Market
Share (% )
CCIL
Sr.
No.
115
statistics
ISINDESC
No. of
Trades
Value
(` Cr.)
34
9.15% G.S. 2024
11
95
0.02
35
8.13% G.S. 2022
70
0.02
36
6.90% G.S. 2019
50
0.01
37
7.40% G.S. 2035
40
0.01
38
7.95% OMC SB 2025
29
0.01
39
10.79% G.S. 2015
25
0.01
40
6.05% G.S. 2019
15
0.00
41
7.37% G.S. 2014
15
0.00
42
10.47% G.S. 2015
10
0.00
43
7.46% G.S 2017
10
0.00
44
6.25% G.S 2018
0.00
45
10.00% G.S. 2014
0.00
46
8.26% G.S. 2027
0.00
46903
438412
100.00
CCIL
Sr.
No.
116
Market
Share (% )
Days
Traded
Days Traded with 5

trades or more per day
Days Traded with less

than 5 trades per day
statistics
TABLE 36: LIQUIDITY DISTRIBUTION (G-SEC)
5 or more Trades Per Day

Days
ISINDESC
Trades
Traded
8.28% G.S. 2027
19
12122
8.12% G.S. 2020
19
4423
42360
6.07% G.S. 2014
22
785
8.32% G.S. 2032
19
583
5404
8.97% G.S. 2030
17
133
8.20% G.S. 2025
19
569
4739
6.72% G.S. 2014
21
700
7.16% G.S. 2023
18
18949
167255
8.19% G.S. 2020
16
225
7.28% G.S. 2019
18
3583
37249
7.59% G.S. 2016
15
435
8.33% G.S. 2026
16
247
2043
8.28% G.S. 2032
17
115
9.20% G.S. 2030
14
360
3935
8.15% G.S. 2022
14
180
8.83% G.S. 2041
11
177
2819
8.07% G.S. 2017 (JUL)
150
10
8.30% G.S. 2042
102
1984
6.90% OMC SB 2026
13
99
11
8.83% G.S. 2023
4835
38946
7.83% G.S.2018
95
12
7.17% G.S. 2015
62
709
9.15% G.S. 2024
11
95
13
6.07% G.S. 2014
52
1655
1.44% IIB 2023
11
120
14
8.28% G.S. 2032
87
712
6.49% G.S. 2015
225
15
8.07% G.S. 2017 (JUL)
30
455
9.20% G.S. 2030
90
16
8.15% G.S. 2022
25
195
8.83% G.S. 2041
55
17
8.24% G.S. 2027
251
4698
7.02% G.S. 2016
475
18
1.44% IIB 2023
34
690
8.79% G.S. 2021
220
19
8.97% G.S. 2030
30
255
7.80% G.S. 2021
45
20
6.72% G.S. 2014
10
190
6.90% G.S. 2019
50
21
6.49% G.S. 2015
10
256
7.17% G.S. 2015
35
22
8.19% G.S. 2020
35
240
7.38% G.S 2015
310
23
7.02% G.S. 2016
235
7.99% G.S. 2017
200
24
8.07% G.S. 2017
200
7.37% G.S. 2014
15
25
6.90% OMC SB 2026
24
170
8.33% G.S. 2026
50
26
8.79% G.S. 2021
30
8.07% G.S. 2017
210
27
7.80% G.S. 2021
90
8.13% G.S. 2022
70
28
7.40% G.S. 2035
40
29
7.56% G.S. 2014
175
30
7.49% G.S. 2017
110
31
7.95% OMC SB 2025
29
32
10.79% G.S. 2015
25
33
6.05% G.S. 2019
15
34
10.47% G.S. 2015
10
35
7.46% G.S 2017
10
36
6.25% G.S 2018
37
10.00% G.S. 2014
38
8.26% G.S. 2027

Total
Expected Bond Days
Efficiency
57
5609
513
11.11
51710
Value
(` Cr.)
145
Total
151
281
5757
Expected Bond Days
924
Efficiency
Value
(` Cr.)
115143
Less than 5 Trades Per Day

Days
ISINDESC
Trades
Traded
8.30% G.S. 2042
9
13
CCIL
Sr.
No.
16.34
117
statistics
MONEY MARKET
Amount ` Crore
TABLE 37: MONEY MARKET COMPARISON

Call
Period
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Value
2416589
3020846
3654936
3455931
3657632
2489975
2908906
4013031
4677777
440667
401567
388163
380929
330366
323593
321061
356312
2942658
Repo
Daily
Average
Value
8304
10310
12474
11835
12744
8737
9894
13886
16186
20030
16063
24536
14651
13215
13483
12842
14846
15014
Value
1560510
1694509
2556501
3948741
4094286
6072829
4099284
3763877
5402766
603520
763713
613400
670303
564856
617125
651575
539935
5024428
CBLO
Daily
Average
Value
5363
5783
8725
13523
14266
21308
13943
12934
18695
27433
30549
24536
25781
22594
25714
26063
22497
25635
Daily
Average
Value
3357
10079
16151
27777
30748
54531
41700
38335
41620
59015
48706
61558
76018
69364
69514
55284
52049
61557
Value
976789
2953132
4732272
8110828
8824784
15541378
12259715
11155428
12028040
1298341
1217645
1538959
1976477
1734095
1668333
1382101
1249180
12065130
COLLATERALISED BORROWING AND LENDING OBLIGATION (CBLO)

Amount ` Crore
TABLE 38: CBLO TRADING
CCIL
Period
118
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Overnight
Trades
Value
Term
Trades
Total
Value
Trades
Daily Average
Value
Trades
Value
157
829
2280
58136
22802
768294
54026 2391854
69602 3860456
93282 6699077
94344 7099527
115171 12747733
121286 10516301
118699 9481527
129197 10194520
2
780
6549
13437
16279
19995
24597
26881
24097
25250
26902
23
18715
208497
561280
871815
1411751
1725258
2793645
1743444
1673901
1833520
159
3060
29351
67463
85881
113277
118941
142052
145383
143949
156099
852
76851
976790
2953134
4732271
8110828
8824784
15541378
12259745
11155428
12028040
3
10
101
229
292
385
414
498
495
495
540
16
251
3345
10045
16096
27588
30748
54531
41700
38335
41620
10066 1088727
11640 1088744
11913 1315710
14975 1693825
12416 1383690
12682 1447616
12071 1191393
11137 1042961
96900 10252667
2306
1886
2404
2533
3448
2377
2214
2772
19940
209614
128901
223249
282653
350405
220717
190708
206219
1812464
12372 1298341
13526 1217645
14317 1538959
17508 1976477
15864 1734095
15059 1668333
14285 1382101
13909 1249180
116840 12065130
562
541
573
673
635
627
571
580
596
59015
48706
61558
76018
69364
69514
55284
52049
61557
statistics
MARKET REPO
TABLE 39: REPO TERM ANALYSIS
4-7 days
%t to
% to
total no
total
of
value
trades
15.46
15.95
13.63
14.37
5.30
6.35
3.06
2.71
4.32
3.57
2.80
2.69
4.35
4.17
6.23
6.00
2.96
2.68
5.17
5.24
3.49
4.16
9.41
10.15
0.24
0.17
7.70
7.53
0.24
0.19
11.87
12.67
10.57
11.99
0.48
0.89
18.66
19.61
6.91
7.31
8-14 days
% to
% to
total no
total
of
value
trades
2.26
1.78
0.58
0.34
0.09
0.11
0.19
0.08
0.12
0.07
0.03
0.01
0.07
0.03
0.19
0.23
0.27
0.08
0.39
0.11
0.14
0.21
0.05
0.17
0.00
0.00
0.12
0.19
0.10
0.09
0.03
0.00
0.03
0.00
0.10
0.04
0.14
0.04
0.07
0.06
TABLE 40: INSTRUMENTWISE SETTLEMENT OF REPO TRADES

Cen. Govt. Dated Securities
Treasury Bills
Settlement Period
Avg.
%
Avg.
%
Values
Value
Value
Share
Value
Share
2002-03
403971
1360
86.28
64238
216
13.72
2003-04
874438
2974
92.71
59222
201
6.28
2004-05
1262149
4322
81.02
286955
983
18.42
2005-06
1369411
4674
80.81
277687
948
16.39
2006-07
2126634
7233
83.19
379165
1290
14.83
2007-08
3569960
12102
90.41
323984
1098
8.20
2008-09
3475348
12109
84.88
583335
2033
14.25
2009-10
5233295
18362
86.18
812537
2851
13.38
2010-11
3253965
11068
79.38
832632
2832
20.31
2011-12
2186877
7515
58.10 1554121
5341
41.29
2012-13
2918337
10098
54.02 2413144
8350
44.66
Apr-13
339880
15449
56.32
262403
11927
43.48
May-13
477785
19111
62.56
282180
11287
36.95
Jun-13
312330
12493
50.92
298809
11952
48.71
Jul-13
313089
12042
46.71
356846
13725
53.24
Aug-13
242467
9699
42.93
321197
12848
56.86
Sep-13
270291
11262
43.80
343247
14302
55.62
Oct-13
293186
11727
45.00
356612
14264
54.73
Nov-13
241205
10050
44.67
296341
12348
54.88
2013-14 (Upto November 2013) 2490233
12705
49.56 2517635
12845
50.11
>14 days
% to
% to
total no
total
of
value
trades
1.27
1.11
0.11
0.06
0.02
0.02
0.08
0.04
0.31
0.11
0.30
0.09
0.17
0.07
0.09
0.02
0.32
0.13
0.72
0.18
0.18
0.05
0.03
0.00
0.02
0.01
0.07
0.00
0.02
0.01
0.00
0.00
0.00
0.00
0.17
0.02
0.30
0.07
0.07
0.01
Amount ` Crore
State Development Loans

Avg.
%
Value
Values
Share
20
0
0.00
9530
32
1.01
8803
30
0.57
47411
162
2.80
50677
172
1.98
54807
186
1.39
35603
124
0.87
26996
95
0.44
12688
43
0.31
22878
79
0.61
71282
247
1.32
1237
56
0.21
3748
150
0.49
2261
90
0.37
368
14
0.05
1193
48
0.21
3587
149
0.58
1777
71
0.27
2389
100
0.44
16560
84
0.33
2-3 days
% to
% to
total no
total
of
value
trades
30.96
31.01
32.68
32.94
26.30
24.23
25.73
25.11
21.58
21.06
22.86
23.25
27.17
27.04
23.07
24.25
27.94
31.12
26.27
28.53
27.13
27.75
34.60
35.64
29.04
29.95
17.00
18.39
26.23
27.36
29.31
29.98
17.76
17.90
34.12
33.55
17.96
18.05
25.93
26.59
CCIL
O/N
% to
% to
Settlement Period
total no
total
of
value
trades
2002-03
50.05
50.15
2003-04
53.00
52.29
2004-05
68.29
69.29
2005-06
70.93
72.06
2006-07
73.68
75.19
2007-08
74.00
73.97
2008-09
68.24
68.69
2009-10
70.42
69.51
2010-11
68.51
65.99
2011-12
67.46
65.94
2012-13
69.06
67.82
Apr-13
55.91
54.04
May-13
70.70
69.88
Jun-13
75.11
73.89
Jul-13
73.41
72.35
Aug-13
58.79
57.34
Sep-13
71.64
70.10
Oct-13
65.15
65.51
Nov-13
62.95
62.23
67.02
66.03
Percent
119
statistics
TABLE 41: CROMS TRADING ACTIVITY

CROMS SPECIAL
CCIL
Date
120
No. of
Value
Trades
CROMS BASKET
WAR
No. of
Trades
Value
Amount ` Crore
CROMS - TOTAL
REPO
WAR
No. of
Trades
Value
WAR
No. of
Trades
Value
% Share
of
CROMS
WAR in Repo
volumes
1-Nov-13
73
6413 8.6548
209
39937 8.6225
282
46350
8.6270
297
48046
8.6253
96.47
5-Nov-13
48
4562 8.6430
133
24926 8.4171
181
29488
8.4521
199
34043
8.4480
86.62
6-Nov-13
69
7468 8.1137
99
18630 7.8802
168
26098
7.9470
181
27641
7.9427
94.42
7-Nov-13
50
5203 8.0759
98
17704 8.1135
148
22907
8.1049
164
24465
8.1031
93.63
8-Nov-13
63
5393 8.4971
88
16354 8.4658
151
21747
8.4736
168
24284
8.4948
89.55
11-Nov-13
61
4905 8.6422
92
15764 8.7270
153
20669
8.7069
166
23246
8.7203
88.92
12-Nov-13
52
4714 8.7168
94
16505 8.7658
146
21219
8.7549
159
23377
8.7527
90.77
13-Nov-13
66
5036 8.6735
98
16422 8.7786
164
21458
8.7540
179
23441
8.7535
91.54
14-Nov-13
92
6005 8.6131
256
42856 8.6591
348
48861
8.6534
360
50408
8.6521
96.93
18-Nov-13
45
4548 8.6919
108
17561 8.7270
153
22109
8.7198
166
23593
8.7200
93.71
19-Nov-13
60
4459 8.7252
98
16241 8.7445
158
20700
8.7403
170
22236
8.7399
93.09
20-Nov-13
62
5215 8.7368
111
18439 8.7498
173
23654
8.7469
186
25310
8.7458
93.46
21-Nov-13
55
3998 8.7307
94
18096 8.7481
149
22094
8.7450
162
23673
8.7440
93.33
22-Nov-13
69
4261 8.6788
88
17042 8.7036
157
21303
8.6986
168
22513
8.7009
94.63
25-Nov-13
61
3989 8.6414
78
14232 8.7175
139
18221
8.7008
150
19730
8.7011
92.35
26-Nov-13
45
2782 8.6644
91
17087 8.7205
136
19869
8.7126
148
21348
8.7122
93.07
27-Nov-13
53
3534 8.6183
88
17789 8.6663
141
21323
8.6583
154
22707
8.6680
93.91
28-Nov-13
60
3826 8.4853
108
22186 8.5497
168
26012
8.5402
181
27728
8.5507
93.81
29-Nov-13
72
4405 7.9288
248
45361 7.7817
320
49766
7.7947
332
51544
7.7867
96.55
3690
539335
Total
1156 90716
2279 413133
3435 503849
93.42
statistics
TABLE 42: CROMS HISTORICAL SUMMARY

Amount ` Crore
CROMS-SPECIAL
Period
Trades
Value
CROMS-BASKET
% Share
Trades
in Repo
2008-09
957
93369
9.05
2009-10
5336
742575
2010-11
8718
26
Value
CROMS
% Share
Trades
in Repo
853
0.08
12.23
9888 3543468
810326
19.78
2011-12
12757 1333933
2012-13
18732 1936643
983
Total
Value
Daily
%
Average Sharein
Value
Repo
94222
2298
9.14
58.38
15224 4286042
17933
70.61
10181 2016259
49.21
18899 2826585
11398
68.98
35.45
9519 1233105
32.77
22276 2567038
10652
68.23
35.85
18543 2927336
54.19
37275 4863979
19692
90.05
Apr-13
1226
143152
23.72
2402
414427
68.67
3628
557579
30977
92.39
May-13
1766
213365
27.94
2947
525399
68.80
4713
738764
33580
96.73
Jun-13
1623
164191
26.77
2280
411263
67.06
3903
575454
27403
93.84
Jul-13
1354
125098
18.66
2089
330602
49.32
3443
455700
19813
67.98
Aug-13
936
90896
16.09
2189
384267
68.03
3125
475163
23758
84.12
Sep-13
1008
105897
17.16
2371
474264
76.85
3379
580161
29008
94.01
Oct-13
1133
106894
17.27
2772
503402
81.34
3905
610296
29062
98.61
Nov-13
1156
90716
16.82
2279
413133
76.60
3435
503849
26518
93.42
10202 1040209
21.17
19329 3456756
67.87
29531 4496966
27421
89.05
TABLE 43: TOP 5 SECURITIES - BASKET REPO

Amount ` Crore
24-04-2014 MATURING 182 DTB
Value
RATE
96
45519
8.5691
7.28% G.S. 2019
157
35886
8.6439
8.12% G.S. 2020
99
17431
8.5796
7.17% G.S. 2015
103
16537
8.4894
7.16% G.S. 2023
89
16068
8.3936
TABLE 44: TOP 5 SECURITIES - SPECIAL REPO

Amount ` Crore
SECURITY
TRADES
Value
RATE
7.28% G.S. 2019
74
13612
8.6338
7.16% G.S. 2023
209
11675
8.4911
8.12% G.S. 2020
66
10486
8.4887
8.28% G.S. 2027
191
9957
8.3410
38
9591
8.6368
08-05-2014 MATURING 182 DTB
TRADES
CCIL
SECURITY
121
statistics
CALL MONEY MARKET

TABLE 45: DEALT TRANSACTIONS ON THE NDS-CALL PLATFORM
Amount ` Crore
CALL
NOTICE
Term
Total
Date
CCIL
Trade
122
Value
WAR
Trade
Value
WAR
Trade
Value
WAR
Trade
Value
1-Nov-13
11
805
7.0938
165
17262
8.6238
100
9.0000
177
18167
2-Nov-13
770
7.7403
770
5-Nov-13
138
12371
8.1098
112
9.3830
143
12483
6-Nov-13
154
13118
8.1334
203
9.1532
157
13321
7-Nov-13
149
15036
8.2688
25
8.3500
151
15061
8-Nov-13
305
8.4303
126
11187
8.6315
150
9.6000
131
11642
9-Nov-13
122
6.8004
122
11-Nov-13
151
13689
8.7555
303
9.1297
157
13992
12-Nov-13
175
16252
8.7685
200
8.8000
177
16452
13-Nov-13
164
15229
8.7905
34
8.8000
165
9.1591
167
15428
14-Nov-13
795
8.1604
194
20837
8.7555
300
9.2750
205
21932
16-Nov-13
13
706
8.7705
13
706
18-Nov-13
153
13442
8.7500
122
8.9139
156
13564
19-Nov-13
131
10707
8.7420
250
8.8800
135
10957
20-Nov-13
127
9895
8.7347
13
1267
8.7862
97
9.1231
142
11258
21-Nov-13
149
12960
8.7272
635
9.0524
156
13595
22-Nov-13
100
8.4500
158
14807
8.7215
35
9.2143
164
14942
23-Nov-13
215
8.0840
215
25-Nov-13
167
15163
8.7317
131
8.7882
170
15294
26-Nov-13
156
14727
8.7220
90
9.1000
157
14817
27-Nov-13
143
13031
8.6890
65
8.7984
147
13095
28-Nov-13
159
15783
7.9465
70
8.9286
161
15853
29-Nov-13
12
1200
7.4667
188
20513
7.6292
55
9.0318
202
21768
30-Nov-13
13
820
4.6110
13
820
2198
197240
845
85905
54
3107
3097
286252
Total
statistics
TABLE 46: OTC DEALS REPORTED ON THE NDS-CALL PLATFORM

Amount ` Crore
CALL
NOTICE
Term
Total
Value
1-Nov-13
17
162
2-Nov-13
28
5-Nov-13
Trade
Value
Trade
Value
WAR
Trade
Value
8.3192
169
2502
8.3746
17
187
2681
147
7.2971
30
7.2786
37
177
179
3365
8.1243
15
42
7.5405
194
3407
6-Nov-13
245
3811
7.4385
11
32
7.2755
257
3848
7-Nov-13
252
3577
7.8641
13
151
7.7112
267
3734
8-Nov-13
21
128
7.9547
250
3409
8.2302
272
3539
9-Nov-13
52
310
6.7326
52
310
11-Nov-13
255
3583
8.4583
17
62
8.3451
273
3646
12-Nov-13
261
3677
8.5017
17
71
8.1269
67
281
3815
13-Nov-13
144
2895
8.5676
130
941
8.3794
10
276
3838
14-Nov-13
18
153
8.2423
156
2829
8.5588
175
2984
16-Nov-13
49
404
6.7387
6.9444
52
413
18-Nov-13
250
3591
8.5390
24
221
8.4095
12
277
3823
19-Nov-13
189
2548
8.5091
75
1060
8.5610
10
265
3611
20-Nov-13
214
2839
8.5156
27
8.2962
222
2868
21-Nov-13
279
3753
8.5178
19
139
8.3004
298
3893
22-Nov-13
33
177
8.3119
267
3863
8.5169
11
302
4051
23-Nov-13
47
278
7.0249
43
7.6706
51
320
25-Nov-13
258
3700
8.5271
20
292
100
279
4093
26-Nov-13
260
3377
8.5007
14
318
8.6050
155
277
3850
27-Nov-13
262
3447
8.4881
12
249
8.3266
274
3695
28-Nov-13
269
3988
8.4209
19
391
8.5420
75
290
4454
29-Nov-13
29
171
7.1348
247
3716
7.5545
276
3887
30-Nov-13
48
472
6.7135
20
6.6250
50
492
3659
50551
1500
20418
25
460
5184
71428
Total
WAR
WAR
CCIL
Trade
Date
123
statistics
Amount ` Crore
TABLE 47: NDS-CALL HISTORICAL*

Dealt
Period
Total

CCIL
Daily
Average
Total
Total Call
Daily
Average
Total
Daily
Average
% Share in Total Call

Dealt
Reported
2006-07
493219
3182
5422
35
2162259
12474
22.81
0.25
2007-08
2745948
9404
26089
89
3456187
11836
79.45
0.75
2008-09
3129843
10905
20480
71
3656962
12742
85.59
0.56
2009-10
2133034
6503
23792
73
2498354
7617
85.38
0.95
2010-11
2371700
9449
49464
197
2945857
11736
80.51
1.68
2011-12
3422484
11761
21071
72
4013031
13790
85.28
0.53
2012-13
3994931
13823
348914
1207
4677777
16186
85.40
7.46
Apr-13
381056
17321
58620
2665
440667
20030
86.47
13.30
May-13
334220
13369
65038
2602
401567
16063
83.23
16.20
Jun-13
313870
12555
74619
2985
388163
15527
80.86
19.22
Jul-13
306704
11796
73860
2841
380929
14651
80.51
19.39
Aug-13
266598
10664
63803
2552
330366
13215
80.70
19.31
Sep-13
250535
10439
70155
2923
323593
13483
77.42
21.68
Oct-13
256097
10244
69055
2762
321061
12842
79.77
21.51
Nov-13
283145
11798
70969
2957
356312
14846
79.47
19.92
2013-14 (Upto November 2013) 2392224
12205
546119
2786
2942658
15014
81.29
18.56
* excluding term money
124
Reported
FOREIGN EXCHANGE MARKET

FOREX SETTLEMENT
TABLE 48: FOREX SETTLEMENT*
Settlement
Period
2002-03
2003-04
Cash
Tom
Value
Value
Value
Value
Trades
Trades
(USD Mn) (` Cr)
(USD Mn) (` Cr)
1036
5951
26861
Spot
Value
Trades
(USD Mn)
74423
96483
Forward
Total
Value
Value
Value
Value
Trades
Trades
(` Cr)
(USD Mn) (` Cr)
(USD Mn)
462370 25809
39619 195665 100232
136102
Average
Value
Value
Value
Trades
(` Cr)
(USD Mn) (` Cr)
1496
7231
658035 1101
501342
2318531
1425
2161
9994
1555
9150
41335
251258
354541
1627644
76668
131700
622691 330517
2004-05
8747
69882
312311 16178
112750
504325
356382
533015
2389936
85020
184133
835863 466327
899780
4042435
1976
3813
17129
2005-06
12946
154626
686160 21307
199621
885585
371059
585089
2594240
84337
240352 1073689 489649
1179688
5239674
2084
5020
22296
2006-07
14292
233010 1050413 25708
316585 1427018
481702
884740
3993765
85106
342646 1551883 606808
1776981
8023078
2550
7466
33710
2007-08
15118
318055 1279466 25598
409979 1652802
609676
1595080
6426403 106683
810551 3368161 757074
3133665 12726832
3181
13167
53474
2008-09
15633
358244 1651695 26536
498767 2299036
675439
1815114
8263760 119912
1086778 4722998 837520
3758904 16937489
3657
16414
73963
2009-10
15733
363904 1719714 27643
484848 2295137
759149
1467601
6951459
81424
672619 3245177 883949
2988971 14211486
3843
12996
61789
2010-11
19778
508131 2311739 32118
651100 2964603
1007258
2119061
9650122
90883
912745 4233688 1150037
4191037 19160153
4792
17463
79834
2011-12
22838
548644 2624112 34391
691043 3304720
1115364
2326368 11141856 110585
1076517 5128924 1283178
4642573 22199612
5579
20185
96520
2012-13
23375
610559 3316787 37349
823910 4477478
1216860
2276085 12374662 118554
1120379 5948085 1396138
4830933 26117013
6018
20823
112573
Apr-13
2186
65740
357442
3577
90822
494171
102935
191502
1041587
11802
117603
657856 120500
465667
2551056
6694
25870
141725
May-13
2311
66392
364730
3672
85106
466107
124143
217569
1193004
9589
93377
527951 139715
462444
2551792
6653
22021
121514
Jun-13
1853
46284
269502
3361
68211
395599
126403
208340
1208909
8601
79460
452420 140218
402295
2326430
7011
20115
116321
Jul-13
2071
51830
309521
3049
59086
352570
128485
217769
1300925
8936
85797
497016 142541
414482
2460032
6788
19737
117144
Aug-13
1853
47411
298172
2955
58546
366591
113355
177543
1111737
8318
73055
425812 126481
356554
2202312
6324
17828
110116
Sep-13
2069
47947
304738
2865
54003
344048
116144
177398
1142003
7983
75291
448465 129061
354639
2239254
6793
18665
117855
Oct-13
2186
57031
351371
3236
68296
421626
113712
167589
1034013
7749
73166
440042 126883
366083
2247052
6344
18304
112353
1836
Nov-13
48314 301969 2636
56303 351425
2013-14 (Upto
16365
430949 2557446 25351
540374 3192136
November 2013)
Notes:
*Commenced operations from November 12, 2002,
# Cash and Tom settlement is with effect from February 5, 2004.
Note : Spot figures are inclusive of spot leg of swap
98481
152318
952344
7058
68661
417246 110011
325595
2022984
6471
19153
118999
923658
1510028
8984522
70036
3147760 18600912
6637
20178
119237
statistics
125
CCIL
666410 3866807 1035410
statistics
TABLE 49: FOREX TRADE TYPE ANALYSIS

Percent
Settlement Period
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Cash
Trades
Value
0.31
1.19
1.88
7.77
2.64
13.11
2.36
13.11
2.00
10.15
1.87
9.53
1.78
12.17
1.72
12.12
1.78
11.82
1.67
12.64
1.81
14.12
1.65
14.36
1.32
11.50
1.45
12.50
1.47
13.30
1.60
13.52
1.72
15.58
1.67
14.84
1.58
13.69
Tom
Trades
Value
0.47
1.83
3.47
12.53
4.35
16.92
4.24
17.82
3.38
13.08
3.17
13.27
3.13
16.22
2.79
15.54
2.68
14.88
2.68
17.05
2.97
19.50
2.63
18.40
2.40
16.96
2.14
14.26
2.34
16.42
2.22
15.23
2.55
18.66
2.40
17.29
2.45
17.17
Spot
Trades
Value
74.25
70.89
76.02
70.72
76.42
59.24
75.78
49.60
79.38
49.79
80.53
50.90
80.65
48.29
85.88
49.10
87.58
50.56
86.92
50.11
87.16
47.11
85.42
41.12
88.85
47.05
90.15
51.79
90.14
52.54
89.62
49.79
89.99
50.02
89.62
45.78
89.52
46.78
89.21
47.97
Forward
Trades
Value
25.75
29.11
23.20
26.27
18.23
20.46
17.22
20.37
14.03
19.28
14.09
25.87
14.32
28.91
9.21
22.50
7.90
21.78
8.62
23.19
8.49
23.19
9.79
25.25
6.86
20.19
6.13
19.75
6.27
20.70
6.58
20.49
6.19
21.23
6.11
19.99
6.42
21.09
6.76
21.17
TABLE 50: FOREX DEAL SIZE ANALYSIS

% to
total
trades
21.93
20.74
21.26
20.32
21.57
16.67
17.00
20.10
18.75
17.05
23.80
24.06
24.04
25.21
28.46
30.53
29.42
31.09
29.74
% to
total
value
7.23
6.07
4.77
3.66
3.29
1.81
1.64
2.55
2.21
2.00
2.79
2.58
2.98
3.48
3.98
4.35
4.36
4.45
4.13
% to
total
trades
52.61
49.79
44.14
42.70
39.00
33.75
32.19
44.55
46.50
48.47
46.36
45.73
48.77
49.27
45.76
43.54
46.44
45.74
46.41
% to
total
value
38.74
32.82
22.88
17.72
13.32
8.15
7.17
13.18
12.76
13.40
13.40
11.83
14.74
17.17
15.74
15.44
16.90
15.85
15.68
> 1 mn
<= 5 mn
% to
% to
total
total
trades value
24.53
46.47
28.02
50.16
31.22
47.19
31.55
40.18
32.03
34.85
36.19
29.18
35.41
25.85
25.18
23.58
24.77
21.89
22.93
20.98
18.86
17.81
18.05
15.08
17.84
17.21
17.26
19.22
16.57
18.13
16.98
18.89
15.68
18.18
15.05
16.55
15.53
16.68
27.74
3.72
46.52
15.30
16.65
< 1 mn
CCIL
Settlement Period
126
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
2013-14 (Upto
November 2013)
1 mn
17.44
> 5 mn
<= 10 mn
% to
% to
total
total
trades value
0.70
4.42
1.07
6.12
1.94
8.70
2.77
10.27
3.68
11.50
8.62
19.93
10.31
22.22
5.90
16.56
5.31
13.81
6.47
17.23
6.25
17.54
6.62
16.66
4.96
14.48
4.58
15.40
5.33
17.74
5.22
17.86
4.55
15.91
3.94
13.16
4.06
13.24
4.91
15.61
Percent
> 10 mn
<= 20 mn
% to
% to
total
total
trades value
0.19
2.25
0.30
3.18
0.97
8.21
1.58
11.18
1.95
11.41
2.13
8.78
2.16
8.20
1.93
9.78
1.92
9.18
2.13
10.24
1.96
9.88
2.10
9.52
1.63
8.61
1.52
9.15
1.56
9.33
1.45
8.85
1.61
10.02
1.56
9.35
1.56
9.13
1.62
9.23
> 20 mn
% to
total
trades
0.04
0.08
0.47
1.08
1.77
2.63
2.93
2.33
2.75
2.95
2.77
3.44
2.76
2.17
2.31
2.29
2.30
2.62
2.69
% to
total
value
0.89
1.65
8.25
16.99
25.64
32.15
34.92
34.35
40.15
36.16
38.57
44.33
42.00
35.59
35.08
34.60
34.63
40.64
41.13
2.56
38.70
statistics
TABLE 51: TENORWISE FORWARD TRADES ANALYSIS

% to
total
value
16.07
22.50
20.00
22.84
25.61
31.47
23.62
20.88
30.54
22.62
17.65
18.50
16.24
16.16
22.48
16.50
19.90
25.07
30.20
14.17
20.28
21.82
20.81
16.77
> 180 Days &

<= 365 Days
% to
% to
total no
total
of trades value
35.66
37.25
35.34
31.77
38.51
36.26
40.52
36.16
35.67
30.48
32.70
24.46
38.80
31.98
43.59
41.57
36.63
28.91
39.61
36.86
49.36
47.10
54.69
50.75
50.11
46.18
46.88
44.59
43.07
40.04
43.59
44.88
42.20
41.51
36.64
34.91
37.18
32.19
13.96
45.12
42.65
TABLE 52: MARKET SHARE - FOREX

Top 'n' Players
Top 5
Top 10
Percent
> 1 Year
% to
total no
of trades
0.96
0.70
2.16
2.15
1.79
1.44
1.90
1.50
1.64
2.00
2.54
1.47
3.46
1.71
1.86
1.27
1.54
4.13
1.66
% to
total
value
1.43
0.65
1.78
1.64
1.64
1.02
2.39
1.92
1.65
1.98
2.69
1.41
3.34
2.38
2.19
1.36
1.95
4.13
1.83
2.12
2.29
Percent
Top 15
Top 20
2002-03
33.65
57.73
72.42
83.30
2003-04
30.53
54.83
69.59
79.45
2004-05
29.00
49.45
63.61
73.61
2005-06
30.59
52.45
68.38
78.89
2006-07
31.15
50.93
65.08
73.69
2007-08
39.66
61.31
76.24
84.55
2008-09
39.65
62.30
76.97
85.71
2009-10
33.13
55.14
71.31
81.51
2010-11
34.94
57.30
73.56
82.97
2011-12
31.01
54.09
70.57
80.23
2012-13
31.53
52.64
68.22
78.40
Apr-13
28.30
49.27
66.42
78.68
May-13
28.18
48.89
64.71
76.16
Jun-13
26.68
47.17
63.24
74.63
Jul-13
29.07
49.63
65.32
75.45
Aug-13
32.87
52.93
66.31
76.68
Sep-13
29.24
50.20
64.25
74.08
Oct-13
27.67
48.57
63.47
74.81
Nov-13
29.34
50.19
64.16
73.85
28.83
49.53
64.78
75.67
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
2013-14 (Upto
November 2013)
% to
total no
of trades
13.54
17.19
15.66
17.99
19.70
16.41
14.41
14.36
19.63
18.49
14.42
11.87
11.37
13.23
16.65
14.21
14.48
15.73
17.68
> 90 Days &

= 180 Days
% to
% to
total no
total
of trades value
26.49
22.35
22.80
20.24
19.88
17.86
17.55
15.18
19.06
17.21
22.63
17.22
21.08
18.59
18.47
15.06
17.15
14.99
16.91
15.79
14.25
13.49
11.88
10.02
16.40
14.36
15.79
14.20
15.56
13.71
18.01
16.26
18.29
13.68
19.58
14.49
21.96
17.47
CCIL
< 30 Days
Settlement
Period
> 30 Days &

<= 90 Days
%t to
% to
total no
total
of trades value
23.35
22.90
23.97
24.84
23.79
24.10
21.79
24.18
23.78
25.06
26.83
25.83
23.82
23.41
22.08
20.57
24.96
23.91
22.99
22.75
19.43
19.07
20.10
19.33
18.66
19.88
22.39
22.68
22.86
21.58
22.91
21.00
23.49
22.96
23.93
21.41
21.52
18.31
127
statistics
TABLE 53: CATEGORYWISE FOREX ACTIVITY - DEAL TYPE

Market Share (%)
CATEGORY
CASH
TOM
SPOT
FORWARD
Foreign Banks
47.69
47.75
40.16
48.29
Public Sector Banks
36.23
34.02
37.40
29.53
15.86
18.07
22.25
22.13
Cooperative Banks
0.17
0.15
0.19
0.05
0.05
0.01
0.00
0.00
TABLE 54: NETTING FACTOR - FOREX

Amount in USD Million
CCIL
Settlement Period
128
Gross
Net
Netting Factor (%)
2002-03
136102
24687
81.86
2003-04
501342
83849
83.28
2004-05
899778
94395
89.51
2005-06
1179688
115909
90.17
2006-07
1776980
171832
90.33
2007-08
3133665
239169
92.37
2008-09
3758905
209822
94.42
2009-10
2988971
177192
94.07
2010-11
4191037
212265
94.94
2011-12
4642573
214730
95.37
2012-13
4830933
222470
95.39
Apr-13
465667
21843
95.31
May-13
462444
23933
94.82
Jun-13
402295
23308
94.21
Jul-13
414482
21825
94.73
Aug-13
356554
18346
94.85
Sep-13
354639
18972
94.65
Oct-13
366083
18893
94.84
Nov-13
325595
18698
94.26
3147760
165818
94.73
statistics
CONTINUOUS LINKED SETTLEMENT (CLS)

TABLE 55: CLS SETTLEMENT
Settlement Period
Trades
Gross Value
Net Value
Netting Factor (%)
2005-06
39961
67858
10143
85.05
2006-07
138797
327380
33493
89.77
2007-08
188741
681369
51428
92.45
2008-09
247571
499318
53726
89.24
2009-10
295258
391932
52239
86.67
2010-11
394315
469873
60605
87.10
2011-12
441933
647151
76881
88.12
2012-13
570308
724121
55305
92.36
Apr-13
47796
56497
4780
91.54
May-13
54201
55542
3715
93.31
Jun-13
57076
57323
4333
92.44
Jul-13
60167
58666
4634
92.10
Aug-13
48544
47778
4668
90.23
Sep-13
47869
51671
4494
91.30
Oct-13
48449
52413
4833
90.78
Nov-13
40919
44865
4606
89.73
405021
424755
36064
91.51
TABLE 56: CURRENCY WISE GROSS SETTLEMENT

Gross Volume in USD
(In millions)
18648.67
1.00000
18648.67
EURO
7745.87
1.36090
10541.35
GB Pound
4727.92
1.63471
7728.80
379641.82
0.00978
3712.11
Australian Dollar
2926.25
0.91244
2670.02
Singapore Dollar
606.41
0.79687
483.23
Swiss Franc
408.35
1.10651
451.85
Canadian Dollar
390.77
0.94592
369.64
NZ Dollar
217.69
0.81579
177.59
Swedish Krone
403.79
0.15278
61.69
SA Rand
338.65
0.09820
33.26
Danish Krone
167.71
0.18245
30.60
HK Dollar
125.10
0.12898
16.14
76.43
0.16356
12.50
Japanese Yen
Norwegian Krone
Total
44937.44
US Dollar
MTM Rates
CCIL
Currency
Currency Wise Gross Volume

(in millions)
129
statistics
TABLE 57: TOP 5 CURRENCY PAIRS - CLS

Sr. No.
Currency Pair
Gross Volume
EUR/USD
14861
33.07
USD/GBP
12398
27.59
JPY/USD
5826
12.96
EUR/AUD
2663
5.93
AUD/USD
2505
5.58
Others
6684
14.87
44939
100.00
Total
FOREX TRADING PLATFORM: FX-CLEAR

TABLE 58: TRADING DETAILS
Spot
Period
Trades
CCIL
Value
Trades
Value
2003-04
881
646
2004-05
3329
2250
13
2005-06
16636
11893
67
48
2006-07
46553
33264
190
136
2007-08
73943
49139
297
197
2008-09
79125
46889
330
195
2009-10
99090
53435
415
224
2010-11
111023
58577
448
236
2011-12
124664
65197
522
273
2012-13
171398
87689
708
362
Apr-13
15345
7917
853
440
May-13
17629
9048
801
411
Jun-13
16609
8464
830
423
Jul-13
22351
11353
972
494
Aug-13
20184
10218
1009
511
Sep-13
21110
10737
1056
537
Oct-13
21960
11133
1046
530
Nov-13
18262
9264
961
488
153450
78134
941
479
130
Daily Average
statistics
DERIVATIVES
TABLE 59: INTEREST RATE SWAP TRANSACTIONS (MATCHED) - NOVEMBER 2013
Amount ` Crore
Volume
Trades
INBMK
Volume
Trades
TOTAL
Volume
Trades
Volume
Trades
1-Nov-13
59
7875
400
65
8275
5-Nov-13
43
2950
50
44
3000
6-Nov-13
48
4475
48
4475
7-Nov-13
53
3300
53
3300
8-Nov-13
75
7625
200
79
7825
11-Nov-13
74
6025
125
77
6150
12-Nov-13
102
8575
200
106
8775
13-Nov-13
72
8100
180
76
8280
14-Nov-13
88
8275
100
90
8375
18-Nov-13
27
4975
11
970
38
5945
19-Nov-13
48
2825
15
1080
63
3905
20-Nov-13
46
5175
160
50
5335
21-Nov-13
37
3000
490
43
3490
22-Nov-13
89
8050
105
91
8155
25-Nov-13
19
1350
100
22
1450
26-Nov-13
28
3730
12
925
40
4655
27-Nov-13
83
6875
11
550
94
7425
28-Nov-13
90
8350
310
98
8660
29-Nov-13
75
5575
325
81
5900
1156
107105
102
6270
1258
113375
61
5637
330
66
5967
Total
Average
TABLE 60: INTEREST RATE SWAP (MIBOR) MARKET SHARE - NOVEMBER 2013
Amount ` Crore and Share in %
Buy
Category
Foreign Banks
Sell
Total
Market Notional Market

Deals
Deals
Deals
Share Amount Share
Share Amount Share
Share Amount Share
840
72.66
81330
75.93
838
72.49
77405
12
1.04
1000
0.93
0.09
50
0.05
Primary Dealers
139
12.02
13425
12.53
157
13.58
16300
Private Banks
165
14.27
11350
10.60
160
13.84
13350
Nationalized Banks
Total
1156 100.00
107105 100.00 1156 100.00
72.27 1678
72.58
158735
74.10
13
0.56
1050
0.49
15.22
296
12.80
29725
13.88
12.46
325
14.06
24700
11.53
107105 100.00 2312 100.00
214210 100.00
MIFOR
CCIL
MIBOR
Date
131
statistics
TABLE 61: INTEREST RATE SWAP (MIFOR) MARKET SHARE - NOVEMBER 2013
Amount ` Crore and Share in %
Buy
Category
Foreign Banks
Sell
Total

Deals
Deals
Deals
Share Amount Share
Share Amount Share
Share Amount Share
81
79.41
4915
78.39
43
42.16
3060
Nationalized Banks
0.00
0.00
0.00
0.00
Primary Dealers
0.00
0.00
0.00
21
20.59
1355
21.61
59
57.84
3210
Private Banks
Total
102 100.00
6270 100.00
102 100.00
48.80 124.00
60.78
7975
63.60
0.00
0.00
0.00
0.00
0.00
51.20
80.00
39.22
4565
36.40
6270 100.00 204.00 100.00
12540 100.00
TABLE 62: TOP N MARKET SHARE - IRS

Percent
MIBOR
MIFOR
Top 1
13.39
16.51
Top 5
56.69
63.84
Top 10
83.11
89.23
TABLE 63: IRS TRADE SUMMARY (MATCHED)

Amount ` Crore
MIBOR
MIFOR
INBMK
Period
CCIL
Trades
132
Value
Trades
Value
Trades
Value
2007-08
79495
4728077
18139
647609
385
14365
2008-09
40912
2644846
4799
223663
132
6575
2009-10
20352
1452058
1050
53867
77
5125
2010-11
33057
2359722
1291
74911
150
8775
2011-12
33642
2451048
2101
109973
14
860
2012-13
22713
2021607
1252
75435
11
635
Apr-13
2161
200500
132
6036
May-13
3179
231617
104
4702
Jun-13
3426
276495
131
7789
Jul-13
3984
347525
157
8059
Aug-13
2698
216545
115
4950
Sep-13
1729
141525
124
6205
Oct-13
1299
135575
121
8160
Nov-13
1156
107105
102
6270
19632
1656887
986
52171
statistics
TABLE 64: OUTSTANDING POSITION IN IRS TRANSACTIONS

Amount ` Crore
MIBOR
Period
MIFOR
INBMK
Trades
Notional
Sum
Trades
Notional
Sum
2007-08
61665
3655595
16528
611566
2008-09
23732
1394018
11803
2009-10
29853
1748787
2010-11
43197
2011-12
Total
Notional
Sum
Trades
Notional
Sum
368
13690
78561
4280852
468045
461
18715
35996
1880778
8201
326852
450
20385
38504
2096024
2645709
6357
270080
542
26910
50096
2942699
27613
1975121
6402
296491
520
25910
34535
2297521
2012-13
20958
1554242
6017
294937
489
24845
27464
1874024
21913
1678590
5727
280225
458
22820
28098
1981635
Trades
TABLE 65: NETTING FACTOR - IRS NON-GUARANTEED SETTLEMENT

Amount ` Crore
Net Amount
Netting %
2009-10
13827
3688
73.33
2010-11
22794
5250
76.97
2011-12
28328
7735
72.69
2012-13
23797
6732
71.71
Apr-13
1069
370
65.41
May-13
797
302
62.11
Jun-13
1251
454
63.73
Jul-13
1212
383
68.43
Aug-13
1448
400
72.37
Sep-13
1814
608
66.46
Oct-13
1685
663
60.65
Nov-13
1592
595
62.62
10867
3774
65.27
Gross Amount
CCIL
Settlement Period
133
statistics
INTEREST RATE MOVEMENT

HIGHLIGHTS
prevailing a year back. In the last one month,

yields have, however, moved to lower levels
across the curve.
Zero coupon yields have moved to higher levels

across the curve as compared to the yields
Chart 1: Zero Coupon Yield Curve

9.30
Zero Coupon Rate (%)
9.00
8.70
8.40
8.10
7.80
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Tenor (In years)
November 29, 2013
October 31, 2013
November 30, 2012
CCIL
134
(%)
Chart 2: Sovereign Yield Curve

9.30
9.20
9.10
9.00
8.90
8.80
8.70
8.60
8.50
8.40
8.30
8.20
8.10
1
11
13
15
17
19
21
23
25
27
29
31
Tenor
November 29, 2013
October 31, 2013
November 30, 2012
statistics
TABLE 66: SPREAD ANALYSIS - SDL

State
ANDHRA PRADESH
No. of Trades
Traded Volume (` Crore)
Average Spread (bps)
101
1070
36
BIHAR
72
42
CHHATTISGARH
25
GUJARAT
78
842
38
HARYANA
12
115
41
437
43
KARNATAKA
53
942
41
KERALA
25
270
37
90
41
283
2458
36
88
38
RAJASTHAN
26
288
35
TAMIL NADU
115
1543
37
23
196
40
WEST BENGAL
146
1593
41
Total
894
10009
38
HIMACHAL PRADESH
MADHYA PRADESH
MAHARASHTRA
PUNJAB
UTTAR PRADESH
CCIL
Note: Spread has been calculated on the basis of deals settled through CCIL taking into account only outright deals of `5 Crore and
above. The methodology and other information on the spread can be requested from Economic Research Department, CCIL
135
136
8.7548
8.4041
8.3870
8.5409
8.6510
8.6942
8.8641
9.0400
9.0840
9.0070
8.9824
9.1516
9.1486
9.0742
9.1910
9.0895
9.1655
9.2477
9.2732
9.1673
9.2861
9.1776
9.1916
9.1677
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2030
2032
2034
2035
2036
2039
2040
2041
2042
9.0393
9.0503
9.0438
9.1543
9.0420
9.1501
9.0357
9.0512
8.9870
9.0433
8.8378
8.9846
8.9809
8.9743
8.5970
8.7254
8.7810
8.7193
8.6325
8.5289
8.4907
8.5306
8.3535
8.5351
9.2805
9.3756
9.3214
9.4328
9.3136
9.4192
9.3013
9.2974
9.2952
9.2452
9.0778
9.2049
9.2209
9.0386
8.6789
9.2097
8.9326
8.9976
8.9453
8.8541
8.6984
8.7049
8.6279
9.0838
9.3175
9.3367
9.3239
9.4296
9.3026
9.2252
9.2821
9.3058
9.2123
9.2482
9.1131
9.0900
9.0720
8.9951
8.7426
9.0430
9.0841
9.2243
9.3078
9.2214
9.4271
9.8716
9.2322
10.8692
November October September August

29, 2013 31, 2013 30, 2013 30, 2013
2014
2013
Year
CCIL
8.7476
8.7229
8.7216
8.8216
8.6971
8.8034
8.6883
8.6540
8.7138
8.7550
9.1538
9.1224
8.6539
9.0672
8.2385
8.6130
8.6720
8.7530
8.9182
8.9766
8.9543
9.0953
9.3751
9.9125
July 31,
2013
7.8705
7.8652
7.8590
7.9618
7.8210
7.9421
7.9335
7.8250
7.8221
7.8267
7.7576
7.6550
7.6523
7.6709
7.4518
7.6347
7.6890
7.6710
7.6129
7.6482
7.5868
7.5378
7.5620
7.5735
June 30,
2013
Percent
7.4959
7.5273
7.5265
7.6270
7.5025
7.6152
7.6109
7.4992
7.4946
7.5699
7.4543
7.4373
7.4233
7.5116
7.2389
7.4602
7.4908
7.3524
7.4966
7.3802
7.3488
7.4684
7.3178
7.4977
7.9204
7.9760
7.9498
8.0636
7.9511
8.0583
8.0524
7.9204
7.9639
7.9632
7.8656
7.7946
7.7810
7.8722
8.2514
7.7393
7.7884
7.5327
7.7003
7.5730
7.5321
7.4598
7.4539
7.6674
8.1789
8.2249
8.2099
8.3166
8.1671
8.3150
8.3106
8.1826
8.2394
8.2313
8.1075
8.0679
8.0638
8.1265
8.1096
7.9536
8.0476
7.8340
8.0369
7.9510
7.8743
7.7948
7.7363
8.0151
8.0707
8.1036
8.0776
8.1831
8.0387
8.1735
8.1716
8.0572
8.0852
8.1123
8.0001
7.9411
7.9439
8.0440
8.0035
7.8459
8.0061
7.9406
8.0036
7.8801
7.8557
7.8370
7.7088
7.9495
8.0778
8.1051
8.0834
8.1925
8.0704
8.1778
8.1751
8.0719
8.0968
8.1502
8.0259
8.0001
7.9919
8.0788
8.0754
7.8934
8.0230
7.9726
8.0316
7.9574
7.8741
7.8739
7.7465
7.9743
8.2647
8.3077
8.2985
8.3982
8.2685
8.3779
8.3719
8.2365
8.2506
8.3225
8.2323
8.1683
8.1563
8.2530
8.2697
8.0601
8.1726
8.1122
8.2207
8.1143
8.0203
8.0425
7.9141
8.0177
73
13
-
74
75
76
76
75
80
70
75
74
87
86
66
65
92
80
68
40
47
39
47
43
14
13
13
13
12
21
11
10
15
24
16
17
41
36
26
14
12
-14
22
8.4576
8.4400
8.5362
8.4050
8.5094
8.5014
8.3622
8.3864
8.4385
8.3325
8.2774
8.2912
8.3215
8.3539
8.1680
8.2388
8.1837
8.2923
8.1802
8.1531
8.3054
7.9350
8.3239
Change in
YTM
YTM(bps)
May 31, April 30, March February January December November Month to Year on
31, 2013 28, 2013 31, 2013 31, 2012 30, 2012
2013
2013
Month
Year
8.1660
8.3460
TABLE 67: YIELD MOVEMENT
statistics
statistics
CORPORATE BONDS
Primary market issuances fell marginally to 168 in
November 2013, as against 170 issuances in October
2013. Finance and infrastructure companies were the
major issuers with 101 issuances (60%) and 62
issuances (37%), respectively. Among other issuers,
other corporates and manufacturing companies
accounted for a share of 2% and 1%, respectively.
Fixed coupon bonds constituted 79.76% (134

bonds) of the total issuances, while floating rate
bonds and zero coupon bonds had a share of 12.50%
(21 bonds) and 7.74% (13 bonds), respectively. Out
of 168 issues, 41 issuances were in the 2 to 5 year
tenor. The maturity-wise analysis of activity in the
primary corporate bond market is given below:
TABLE 68: PRIMARY MARKET ISSUANCE CORPORATE BONDS - NOVEMBER 2013

Tenor Buckets
No.
Fixed
Floating
Zero
Coupon
Avg. Fixed
Coupon (%)
Max.
Coupon
(%)
Min.
Coupon
(%)
Floating
Benchmark
<=1 year
10
10.90%
13.93%
9.38%
Nifty Linked
> 1 year -<=2 years
35
28
11.50%
20.00%
5.00%
Nifty Linked
> 2 years -<=5 years
41
22
14
12.89%
42.75%
8.70%
Nifty Linked
>5 years -<=10 years
35
34
9.93%
14.70%
8.70%
>10 years-<=15 years
30
30
8.91%
11.10%
8.01%
>15 years
17
17
8.67%
9.00%
8.38%
Source: NSDL
compared to `76,420 crore in October 2013. The

average traded volumes on the reporting platforms
were dispersed during the month with a significant
increase in average volumes reported on NSE
platform which stood at `937 crore compared to
`316 crore in the previous month, while the volumes
reported on the FIMMDA and BSE platforms fell to
`1774 crore and `266 crore, compared to `3044
Average AAA 5-year spreads increased to 91 bps from

76 bps in the previous month. In contrast to this, 10year AAA spreads narrowed to 55 bps compared to
82 bps in the previous month. Power Finance
Corporation and Housing Development Finance
Corporation were the two major traded corporates
in November 2013.
25.97% to `56,574 crore in November 2013,
crore and `278 crore, respectively in the previous

month.
CCIL
Trading volumes in the secondary market fell by
137
statistics
PRIMARY ISSUANCE ANALYSIS

FIXED COUPON BONDS
TABLE 69: ANALYSIS OF CORPORATE BOND ISSUANCE
Type
Sector
Rating
No.
Avg.
Tenor
Max.
Tenor
Min
Tenor
Avg.
Coupon
(%)
Max.
Coupon
(%)
Min.
Coupon
(%)
PSU
Finance
AAA
15
10.54
20.01
3.00
8.91
9.75
8.18
PSU
Finance
NA
11.67
15.01
10.01
8.88
9.80
8.35
PSU
Infrastructure
AAA
42
9.82
20.01
2.00
8.73
8.92
8.18
PSU
Infrastructure
NA
6.67
10.01
5.00
9.37
9.80
8.50
PVT
Finance
AAA
15
7.72
20.01
1.01
9.29
10.70
8.01
PVT
Finance
AA
29
3.46
10.01
0.45
11.94
42.75
8.90
PVT
Finance
5.20
8.01
1.75
11.60
13.00
9.90
PVT
Finance
BBB
3.50
4.00
3.00
12.70
13.40
12.00
PVT
Finance
BB
5.00
6.00
4.00
14.70
14.70
14.70
PVT
Finance
NA
3.54
5.00
2.08
10.35
10.70
10.00
PVT
Infrastructure
AA
7.01
7.01
7.01
10.20
10.20
10.20
PVT
Infrastructure
2.26
5.00
1.01
11.95
13.00
11.60
PVT
Infrastructure
NA
10
4.18
8.59
1.99
15.18
21.00
11.60
PVT
Manufacturing
NA
2.00
2.00
2.00
5.00
5.00
5.00
PVT
Others
2.25
3.00
1.50
12.20
12.50
11.90
CCIL
TABLE 70: RATING ANALYSIS OF CORPORATE BOND ISSUANCES
138
Rating
No.
Avg. Tenor Max. Tenor Min Tenor
Avg. Coupon
(%)
Max. Coupon
(%)
Min. Coupon
(%)
AAA
72
9.53
20.01
1.01
8.89
10.70
8.01
AA
30
3.58
10.01
0.45
11.88
42.75
8.90
3.23
8.01
1.01
11.89
13.00
9.90
BBB
3.50
4.00
3.00
12.70
13.40
12.00
BB
5.00
6.00
4.00
14.70
14.70
14.70
NA
19
5.57
15.01
1.99
12.22
21.00
5.00
statistics
TABLE 71: TOP 5 ISSUANCES

Company
No.
NHPC LIMITED
40
Avg.
Max.
Min.
%
Avg. Max. Min
Coupon Coupon Coupon
Share
Tenor Tenor Tenor
(%)
(%)
(%)
9.68 20.01
2.00
8.75
8.92
8.18 29.85
POWER FINANCE CORPORATION LIMITED
13.76
20.01
5.00
8.69
9.00
8.18
5.97
ECL FINANCE LIMITED
1.57
3.33
0.59
18.73
42.75
12.25
4.48
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
1.80
5.00
1.01
9.69
9.96
9.25
4.48
INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED
15.01
20.01
10.01
8.42
8.75
8.01
4.48
Sector
No.
TABLE 72: SECTOR ANALYSIS

Avg. Coupon Max. Coupon Min. Coupon
Avg. Tenor
Max. Tenor
Min Tenor
(%)
(%)
(%)
Finance
71
6.32
20.01
0.45
10.65
42.75
8.01
Infrastructure
60
8.17
20.01
1.01
10.08
21.00
8.18
Manufacturing
2.00
2.00
2.00
5.00
5.00
5.00
Others
2.25
3.00
1.50
12.20
12.50
11.90
Type
No.
TABLE 73: CATEGORY ANALYSIS

Avg. Coupon Max. Coupon Min. Coupon
Avg. Tenor
Max. Tenor
Min Tenor
(%)
(%)
(%)
PSU
63
9.93
20.01
2.00
8.81
9.80
8.18
PVT
71
4.51
20.01
0.45
11.76
42.75
5.00
VARIABLE/ZERO COUPON BONDS

TABLE 74: NON-FIXED RATE BOND ISSUANCE ANALYSIS
Avg. Tenor Max. Tenor
Min Tenor
Remarks
Floating Rate
21
2.63
3.89
0.76
CNX NIFTY INDEX LINKED
Zero Coupon Bond
13
2.12
5.00
0.26
No.
CCIL
Type
139
statistics
SECONDARY MARKET ANALYSIS

TABLE 75: CORPORATE BONDS TRADING DETAILS
Amount ` Crore
FIMMDA
NSE
BSE
Deals on Exchange
Total
CCIL
Date
140
Trades
Volume
Trades
Volume
Trades
Volume
Trades
Value
Trades
Volume
1-Nov-13
73
764
56
799
21
40
150
1603
5-Nov-13
57
885
30
617
16
70
103
1572
6-Nov-13
104
1017
52
491
29
441
185
1949
7-Nov-13
145
1897
38
331
33
334
216
2563
8-Nov-13
107
1156
44
437
28
575
179
2168
11-Nov-13
153
2291
65
1439
37
252
255
3982
12-Nov-13
132
1709
61
1005
34
287
227
3000
13-Nov-13
146
2965
83
2344
28
361
257
5669
14-Nov-13
142
2794
81
1945
19
84
242
4823
18-Nov-13
118
1309
35
109
16
57
169
1474
19-Nov-13
155
2422
83
1471
33
238
271
4131
20-Nov-13
128
1716
73
816
28
667
229
3199
21-Nov-13
156
1927
89
1297
31
363
276
3587
22-Nov-13
154
2060
76
1198
29
349
259
3607
25-Nov-13
124
1618
83
1056
25
129
232
2803
26-Nov-13
152
2228
65
628
31
270
248
3126
27-Nov-13
147
1805
96
888
36
350
279
3043
28-Nov-13
118
1450
69
357
20
102
207
1909
29-Nov-13
142
1704
62
572
18
91
222
2367
2453
33715
1241
17800
512
5059
4206
56574
129
1774
65
937
27
266
221
2978
Total
Average
statistics
TABLE 76: HISTORICAL SUMMARY

Amount ` Crore
Period
2008-09
2009-10
2010-11
2011-12
2012-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
2013-14 (Upto
November 2013)
FIMMDA
Trades
31576
33126
36597
4440
4699
3199
4049
2989
2705
3614
2453
NSE
BSE
Values Trades Values Trades Values

59502
- 48832
- 37495
192994
- 154737
- 54426
408603
7544 149373
4675 40628
351873 11932 191316
6381 48790
443430 20875 236306
8708 56612
71452
2421 31396
1015 12394
75788
2299 35031
1089 11305
51666
1933 30444
721
5273
62891
2260 35984
1055 11813
41058
1514 20417
835
7244
38254
1388 17610
620
6570
63933
890
6645
569
5841
33715
1241 17800
512
5059
28148 438758
13946 195327
6416
65499
Deals on
Total
Average
Exchange
Trades Values Trades Value Trades Value
- 145828
621
- 402157
1690
- 43795 598604
177
2423
- 51439 591979
216
2487
- 66180 736347
275
3055
7876 115241
438
6402
65
7
8152 122131
371
5551
53
181
5906 87565
295
4378
32
20
7396 110708
336
5032
3
1
5341 68721
267
3436
1
4714 62434
236
3122
3
5076 76420
242
3639
4206 56574
221
2978
157
209
48667 699792
300
4320
TABLE 77: CATEGORYWISE TRADING ANALYSIS

Trades
Value (` Crore)
Avg. Tenor
Avg. Spread (bps)
FINANCE
AAA
2172
36789
4.73
84
FINANCE
AA
384
3585
4.79
147
FINANCE
A1
11
4.57
332
FINANCE
71
545
10.19
87
FINANCE
BBB
16
455
2.82
263
FINANCE
BB
2.45
116
FINANCE
NA
26
1.43
264
INFRASTRUCTURE
AAA
610
8159
6.90
77
INFRASTRUCTURE
AA
87
1500
7.89
70
INFRASTRUCTURE
A1
10
0.59
189
INFRASTRUCTURE
55
95
9.40
161
INFRASTRUCTURE
BBB
7.23
325
INFRASTRUCTURE
NA
245
2.00
864
MANUFACTURING
AAA
78
82
6.98
160
MANUFACTURING
AA
39
943
6.40
140
MANUFACTURING
A1
70
0.35
44
MANUFACTURING
4.09
287
MANUFACTURING
NA
202
6.12
101
OIL
AAA
66
2.95
107
OIL
AA
11
56
13.03
76
OIL
NA
20
4.24
95
OTHERS
AAA
71
818
6.75
82
OTHERS
AA
34
522
2.26
144
OTHERS
194
3.86
276
OTHERS
NA
143
2.88
211
Rating
CCIL
CATEGORY
141
statistics
TABLE 78: RATING ANALYSIS

Rating
Value (` Crore)
Trades
AAA
Avg. Tenor
Avg. Spread (bps)
2,939
45,913
5.28
85
AA
555
6,606
5.40
134
A1
15
86
3.31
266
133
839
9.43
132
20
458
4.48
286
BB
2.45
116
NA
32
636
3.15
316
BBB
TABLE 79: CATEGORY ANALYSIS

Category
Value (` Crore)
Trades
FINANCE
Avg. Tenor
Avg. Spread (bps)
2,660
41,406
4.93
99
INFRASTRUCTURE
766
10,011
7.21
101
MANUFACTURING
126
1,302
6.50
148
24
142
8.00
90
119
1,676
5.01
124
OIL
OTHERS
TABLE 80: BOND TYPE ANALYSIS

Type of Bond
FIXED
Value (` Crore)
Trades
3,573
53,156
ZERO COUPON
65
Floating
46
NA
11
CCIL
TABLE 81: AAA SPREAD ANALYSIS
142
Maturity Buckets
<=1 year
> 1 year -<=2 years
Average Spread (bps)

103
97
> 2 years -<=3 years
99
>3 years -<=5 years
95
>5 years-<=7 years
84
> 7 years
58
Avg. Tenor
Avg. Spread (bps)

5.59
102
1,098
2.97
129
130
3.35
-2
154
3.82
195
NATIONAL HOUSING BANK
HDFC BANK LIMITED
EXIM BANK
23 INE040A08336
24 INE514E08BZ4
25 INE001A07JW2
CCIL
Note: Spread over comparable G-Sec

Deals apparently viewed as duplicate deals have been excluded.
Source for Corporate Bonds:
www.fimmda.org
www.nseindia.com
www.bseindia.com
www.nsdl.co.in
DEWAN HOUSING FINANCE CORPORATION LIMITED
22 INE202B07910
FINANCE
CRISIL AAA
FINANCE
FINANCE
CRISIL AAA
FINANCE
CRISIL AAA
FINANCE
CRISIL BBB+
CRISIL AAA
OTHERS
21 INE001A07KR0
CRISIL AA+
STERLITE INDUSTRIES (INDIA) LIMITED
20 INE268A07145
FINANCE
19 INE134E08EZ5
FINANCE
CRISIL AAA
AAA- ICRA
FINANCE
CRISIL AAA
18 INE134E08FU3
FINANCE
FINANCE
CRISIL AAA
[ICRA]AAA (Stable)
17 INE115A07DN2 LIC HOUSING FINANCE LIMITED
16 INE043D07DG4 IDFC LIMITED
15 INE557F08EK6
5-Dec-15
15-Oct-14
31-Oct-22
9-Oct-16
10-Oct-16
21-Nov-18
31
8.84
29-Oct-14
11-Dec-15
28-Dec-22
7-Nov-15
15-May-14
5-Apr-23
15-Oct-17
25-Jun-15
9.18
8.75
9.10
11.35
9.40
9.10
8.91
8.29
9.16
8.93
13-Feb-18
9.05
17
12
22
19
13
32
8.69
23-Dec-13
18
15
12
70
8.75
8.85
8.95
9.47
9.75
64
69
8.82
9.70
12
28
96
226
9.62
9.52
8.95
9.38
400
430
432
445
500
503
563
585
600
600
650
684
700
709
745
800
893
950
1007
1185
1270
1375
1753
3791
Volume
Coupon
Trades
(` Cr.)
(%)
9.81
461
4442
24-Aug-15
INFRASTRUCTURE 25-Mar-28
FINANCE
FINANCE
FINANCE
FINANCE
FINANCE
INFRASTRUCTURE 16-Oct-14
CRISIL AAA
CRISIL AAA
26-Feb-14
2-May-17
11-Mar-18
INFRASTRUCTURE 12-Apr-23
FINANCE
FINANCE
FINANCE
FINANCE
CRISIL AA-
CRISIL AAA
7-Oct-18
Maturity
INFRASTRUCTURE 6-Nov-18
FINANCE
Category
CRISIL AAA
DAMODAR VALLEY CO RPORATION
CRISIL AAA
CRISIL AAA
14 INE753F08028
INE001A07LU2
EXPORT IMPORT BANK OF INDIA
RURAL ELECTRIFICATION CORPORATION LIMITED
CRISIL AAA
INE514E08DD7
CRISIL AAA
INE020B08781
CRISIL AAA
CRISIL AAA
INE020B08831
13 INE514E08BW1
INE001A07KF5
CRISIL AAA
CRISIL AAA
12 INE134E08EY8
INE134E08EP6
HDFC BANK LIMITED
INE134E08FK4
CRISIL AAA
11 INE040A08328
INE020B07HY0
Rating
INE134E07406
Security Description
10 INE514E08CX7
ISIN No.
No.
TABLE 82: TOP 25 TRADED CORPORATE BONDS
9.7400
9.2355
9.6554
11.4784
10.2540
10.1070
9.7659
9.7986
9.8013
9.5233
9.6031
9.4787
9.1000
9.8140
9.3909
9.5988
9.8466
9.6491
9.7565
9.6987
9.7249
9.5597
9.7818
9.5594
Yield
(%)
9.7966
statistics
143
statistics
CERTIFICATES OF DEPOSIT AND COMMERCIAL PAPERS

Amount ` Crore
TABLE 83: CDs AND CPs TRADING DETAILS

CDs
Date
Trades
CPs
Value
Trades
Total
Value
Trades
Value
1-Nov-13
101
4880
37
2578
138
7458
5-Nov-13
85
2940
27
1406
112
4346
6-Nov-13
65
2588
31
1720
96
4308
7-Nov-13
91
4725
47
2273
138
6999
8-Nov-13
68
2904
31
1143
99
4047
11-Nov-13
69
2736
24
544
93
3281
12-Nov-13
79
2965
30
1104
109
4069
13-Nov-13
114
4200
13
446
127
4646
14-Nov-13
96
4830
36
1063
132
5894
18-Nov-13
90
5685
23
935
113
6620
19-Nov-13
64
2931
20
1392
84
4323
20-Nov-13
88
4601
29
1499
117
6100
21-Nov-13
93
4607
24
1056
117
5664
22-Nov-13
96
4531
25
1471
121
6002
25-Nov-13
109
5708
37
2853
146
8561
26-Nov-13
104
4777
44
1723
148
6500
27-Nov-13
80
4344
35
2478
115
6823
28-Nov-13
86
4251
65
3801
151
8052
29-Nov-13
142
8669
64
4093
206
12762
1720
82877
642
33582
2362
116460
91
4361
34
1767
124
6129
Total
Average
Amount ` Crore
CCIL
TABLE 84: HISTORICAL SUMMARY - CP AND CD
144
CDs
Period
CPs
2012-13
20584
1018664
Average
Value
7382
6663
379785
Average
Value
2752
Apr-13
4136
216936
12052
835
45728
2540
May-13
3415
Jun-13
3033
168659
7666
889
54120
2460
166302
8315
811
45937
2297
Jul-13
3259
173356
7880
5411
55587
2527
Aug-13
Sep-13
1892
67180
3359
585
29230
1462
2380
109513
5476
2855
23791
1190
Oct-13
1643
60599
2886
614
36099
1719
Nov-13
1720
82878
4362
642
33583
1768
21478
1045423
6453
12642
254394
1570
Trades
Value
Trades
Value
statistics
TABLE 85: CERTIFICATE OF DEPOSIT - TENORWISE TRADING ANALYSIS

Traded Amount (` Crore)
WAY (%)
411
19640
8.6564
448
26221
9.0640
306
19618
9.0857
195
6932
9.1600
61
1622
9.0456
20
9.9366
17
553
9.3356
22
605
9.2168
176
9.4472
10
64
2090
9.4090
11
120
4024
9.3419
12
66
1372
9.2388
1720
82877
9.0092
Total
Trades
CCIL
Residual Maturity
(Months)
145
Milestones
Milestones
November 5, 2012 - Launch of the Phase II
of the Reporting Platform for Inter-bank
OTC Forex Derivatives.
October 29, 2012 - Migration of Securities
Settlement to CBS.
July 9, 2012 - Launch of the Trade
Repository service for OTC Foreign
Exchange Derivatives. The first phase begins
with the capture of all inter-bank forex
forwards and swaps in the USD-INR
currency pair, and currency options in FCYINR.
June 29, 2012 - The web-based NDS-OM
module for online trading in secondary
market for Government Securities by gilt
account holders (GAH) was launched. The
module permits internet-based direct
participation of gilt account holders in
secondary market for G-secs.
CCIL
June 14, 2012 - The settlement MNSB files

for CCIL's Derivatives, Forex, CBLO and
Securities Segment migrated to Core
Banking Solution (CBS) of RBI from RTGS.
146
February 21, 2012 - The NDS-Auction

Web Based Module was launched to
facilitate direct internet based access to Gilt
Account Holders to directly participate in
Primary auctions of Gilts.
December 1, 2011 - The FIMMDA
Integrated Reporting Platform (F-TRAC),
developed and maintained by Clearcorp
Dealing Systems (India) Ltd., was launched.
The platform is for reporting deals in
Corporate bonds, Corporate bond Repo

and CDs/CPs.
December 1, 2011 - Credit Default Swaps
(CDS) for Corporate Bonds started, with
CDS trade reporting on CCIL's Online
Reporting Engines (CORE).
October 08, 2011 - Market Repos in
STRIPS instruments now facilitated on
CROMS New Version implemented
effective 08 Oct '11. Several other
functionality enhancements also form part
of the CROMS New Version.
July 28, 2011 - CCIL on July 28, 2011
successfully carried out a Portfolio
Compression exercise in the OTC Interest
Rate Swaps market.
June 27, 2011 - Launch of CCIL's new web
portal.
August 11, 2010 - CCIL started settlement
of 'India-Pay Mobile Payment Service - India
Pay Switch' file on a Non Guaranteed basis.
May 31, 2010 - Launch of FX-SWAP
Dealing System an anonymous order driven
matching system which allows trading in 15
Instruments; including 3 upto Spot
instruments (namely, Cash-Tom, Tom-Spot
& Cash-Spot) and 12 month-end Forward
instruments i.e. Spot over Month 1 end to
Month 12 end. FX-SWAP is the fi rst of its
kind platform which offers guaranteed
settlement of forward trades from the point
of trade. However, trades up to the spot leg
are subject to bilateral limits.
Milestones
June 1, 2009 - The CCIL SDL Index was

launched to track the market for SDLs
through a representative index.
May 11, 2009 - Version 2 of NDS Auction
module went live to facilitate bidding in
primary Dated Securities auctions.
February 11, 2009 - CCIL became the first
organization to be granted authorisation by
the Reserve Bank of India under The
Payment & Settlement Systems Act- 2007.
September 10, 2007 - Version 2.0 of

NDSCALL electronic screen-based quote
driven dealing system for Call, Notice &
Te rm m o n e y w a s l a u n c h e d . T h e
enhancements include User hierarchy with
multiple user levels with pre set role
privileges and risk mitigation measures such
as assigning Single Order Limit and setting
up of exposure limits for Counterparties at
various levels.
August 30, 2007 - CCIL's reporting
platform for the transactions in OTC
Interest Rate Derivatives (Interest Rate
Swaps and Forward Rate Agreements
(IRS/FRA)) became operational.
January 27, 2009 - Clearcorp launched

'Clearcorp Repo Order Matching System'
(CROMS), a STP enabled electronic
anonymous order matching platform to
facilitate dealing in market repos in
government securities. CROMS facilitates
dealing in two kinds of Repos viz. Basket
Repos and Special Repos for T+0 and T+1
settlement tenors.
July 03, 2007 - CCIL started releasing the

Daily Spot Reference Rates through it's
website.
January 1, 2009 - CCIL launched the CCIL

Certifi cation Programme (CCP), an
onlinetesting and certifi cation programme.
March 5, 2007 - The eNotice System

extended to Non-NDS Associate Members.
May 21, 2007 - Version 3.0 of the NDS-OM

was launched enabling Odd Lot trading,
trading of new securities in the When Issued
market and trading of CSGL entities on this
platform.
November 27, 2008 - CCIL commenced

Non-Guaranteed Settlement of OTC Trades
in Rupee Derivatives.
January 25, 2007 - CCIL launched the

CCIL MIBOR (CCIL Mumbai InterBank Offer Rate)/MIBID (CCIL
Mumbai Inter-Bank Bid Rate) based on
Dealt Quotes from NDSCall.
November 12, 2007 - The Depository Trust

& Clearing Corporation (DTCC) and The
Clearing Corporation of India Limited
(CCIL) have signed a Memorandum of
Understanding (MOU) aimed at promoting
January 16, 2007 - Euroclear and The

Clearing Corporation of India Limited
(CCIL) signed a Memorandum of
Understanding (MOU) regarding post-
June 1, 2009 - The CCIL Tenor Index was

launched to capture the tenor wise
movement across the term structure.
closer collaboration between the two market

infrastructure organizations.
CCIL
December 1, 2009 - CCIL commenced the

settlement of forex forward trades with
guarantee from the trade date.
147
Milestones
trade processing collaboration.

September 18, 2006 - NDS - CALL, an
electronic screen-based quote driven dealing
system for all Call, Notice and Term Money
operations was launched.
September 11, 2006 - Launch of Intraday
Securities Withdrawal in CBLO segment.
September 4, 2006 - CCIL launched its
eNotice System available to all members for
sending their collateral notices in electronic
form.
September 4, 2006 - CCIL released its
CCIL ALL SOVEREIGN BOND
INDICES (CASBI), which would reflect
the broad movement of the market as it
contains all available sovereign bonds. The
base date of the index is January 1, 2004.
August 2006 - CCIL receives the ISO/IEC
27001:2005 certification for securing its
information assets.
CCIL
July 31, 2006 - Version - 2.0 of the NDS OM Trading Platform launched, enabling
trading in Treasury Bills and the When
Issued market.
148
March 20, 2006 - CCIL has launched

Overnight Collateralised Benchmark
Reference Rates for Indian market, namely
CCIL Collateralised Benchmark Bid
Rate (CCBID) and CCIL Collateralised
Benchmark Offer Rate (CCBOR). The
rates are disseminated at 10:10 A.M. from
Monday to Friday. The historical data is
available in CCIL website (http:
//www.ccilindia.com) from January 2004.
August 16, 2005 - CBLOi (Internet

Trading System for Non-NDS Members)
commenced operations.
August 1, 2005 - RBI launched the
anonymous screen based order matching
trading module for govt. securities on its
Negotiated Dealing SystemOrder Matching
Segment (NDS-OM) with CCIL as the
central counterparty to all deals.
May 2, 2005 - CCIL released its T-Bill Index
consisting of two T-bill indices CCIL
EQUAL WEIGHT T-Bills INDEX and
CCIL LIQUIDITY WEIGHT T-Bills
INDEX. The CCIL T-Bills Indices are
instruments that would capture the market
movement in the short term maturity
segment.
April 6, 2005 - Commenced settlement of
cross currency transactions through CLS.
February 7, 2005 - Started releasing intra-day
comparative money market rates of Call,
Repo and CBLO markets on its website.
January 31, 2005 - Released its Sovereign
Bond Indices, CCIL BROAD GILTS
INDEX, Consisting of top 20 securities and
CCIL LIQUID GILTS INDEX, consisting
of the 5 most liquid bonds, to track the
movement of the government securities
market.
October 14, 2004 - Govt. Securities
Lending and Borrowing Scheme was
operationalised.
August 27, 2004 - Started clearing and
settlement of ATM transactions of National
Financial Switch operated by Institute for
Development and Research in Banking
Milestones
June 15, 2004 - Operationalised Straight

Through Processing arrangement for
settlement of foreign exchange trades done
on FXCLEAR.
April 2, 2004 - Commenced net
settlements in Government Securities as per
DVP III Guidelines of Reserve Bank of
India.
March 5, 2004 - Non-NDS Members
commence CBLO operations.
February 5, 2004 - Extended scope of
coverage of foreign exchange settlements to
include INR/USD Cash and TOM trades.
October 18, 2003 - Electronic movement
of Member Margins / Collaterals facilitated
through Value Free Transfer Module of
NDS.
August 7, 2003 - Launched Electronic
Currency Dealing Platform FX Clear to
facilitate inter-bank foreign exchange
dealing.
July 19, 2003 - Operationalised
Anonymous Auction System to facilitate
Buy Back of Government Securities by
Government of India.
June 4, 2003 - Set up a wholly owned
Subsidiary Company Clearcorp Dealing
Systems (India) Pvt. Ltd. to manage dealing
platforms in Money and Currency Markets.
April 1, 2003 - All trades in the securities
settlement routed through CCIL.
January 20, 2003 - Launched new Money

Market Instrument
Collateralised
Borrowing and Lending Obligation
(CBLO) a repo variant with several unique
features for NDS Members.
November 8,2002 - Commenced
guaranteed settlement of inter-bank foreign
exchange Spot trades in INR/USD and
Forward Trades on Spot Window.
October 25, 2002 - Started publication of
Weekly Market Update containing weekly
statistics and analysis of settlement
information and important market
developments.
October 17, 2002 - Launched Quarterly
Publication Rakshitra containing articles
in relevant operational areas as also detailed
statistics and analysis of settlement
information.
April 10, 2002 - Extended facility of
guaranteed settlement for trades in
Government Securities.
February 15, 2002 - Commenced clearing
and settlement of market trades in
Government Securities co-terminus with
operationalization of Reserve Bank of
India's Negotiated Dealing System (NDS).
April 30, 2001 - Incorporated as India's first
clearing house for settlement of market trades
in Government Securities and inter-bank
foreign exchange transactions.
August 1, 2004 - Rakshitra frequency

enhanced from quarterly to monthly.
February 15, 2003 - Commenced

publication of Zero Coupon Yield Curve on
Website.
CCIL
Technology (IDRBT).
149
Key personnel
KEY PERSONNEL/HODs
CCIL
Person
150
Designation and Department
Phone No.
Mrs. Shyamala Gopinath
Chairperson
61546512
Mr. R. Sridharan
Managing Director
61546511
Mr. Ravi Rajan
Executive Vice President
61546363
Mrs. Indirani Rao
Chief Forex Officer
61546451
Mr. O.N. Ravi
Company Secretary & Corporate Development Officer
Mr. S. Roy
Chief Risk Officer
61546411
Mr. Deepak Chande
Senior Vice President, Finance & Accounts
61546561
Mr. Pradeep. K. Naik
Senior Vice President, Operations (Fixed Income & Money Market)
61546481
Mr. C Kajwadkar
Senior Vice President, Information Technology
61546212
Dr. Golaka C. Nath
Senior Vice President, Economic Research & Surveillance, Membership, HRD
61546581
Mr. Kamal Singhania
Vice President, Forex
61546320
Mr. Praveen Mata
Vice President, Information Technology
61546213
Mr. K. B. Biju
Asst. Vice President, Product Development
61546365
Mr. Amol Pradhan
Asst. Vice President, Collateral & Funds Management
61546482
Mr. Santosh Bhalerao
Asst. Vice President, Information Technology
61546214
Mr. N. Venkatraman
Asst. Vice President, Operations (Fixed Income & Money Market)
Mr. Pradyumna S. Odak
Asst. Vice President, Membership
61546541/6546
61546390/6490
61546551
Mr. Anupam Kumar Mitra Asst. Vice President, Derivatives
61546471
Mr. Rajesh Salunkhe
Jr. Vice President, Product Development
61546348
Mr. S. Ramesh
Jr. Vice President, Product Development
61546333
Mr. S.T.P. Venugopal
Jr. Vice President, Risk Management
61546413
Published by the Research Department, CCIL

Previous Issues
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Rakshitra Vol V No. XII (June '07)
Rakshitra Vol IX No. III (September 10)
Rakshitra Vol VI No. I (July '07)
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Rakshitra Vol IX No. VII (January 11)
Rakshitra Vol VI No. V (November '07)
Rakshitra Vol IX No. VIII (February 11)
Rakshitra Vol VI No. VI (December '07)
Rakshitra Vol IX No. IX (March 11)
Rakshitra Vol VI No. VII (January '08)
Rakshitra Vol IX No. X (April 11)
Rakshitra Vol VI No. VIII (February '08)
Rakshitra Vol IX No. XI (May 11)
Rakshitra Vol VI No. IX (March '08)
Rakshitra Vol IX No. XII (June 11)
Rakshitra Vol VI No. X (April '08)
Rakshitra Vol X No. I (July 11)
Rakshitra Vol VI No. XI (May '08)
Rakshitra Vol X No. II (August 11)
Rakshitra Vol VI No. XII (June '08)
Rakshitra Vol X No. III (September 11)
Rakshitra Vol VII No. I (July '08)
Rakshitra Vol X No. IV (October 11)
Rakshitra Vol VII No. II (August '08)
Rakshitra Vol X No. V (November '11)
Rakshitra Vol VII No. III (September '08)
Rakshitra Vol X No. VI (December '11)
Rakshitra Vol VII No. IV (October '08)
Rakshitra Vol X No. VII (January '12)
Rakshitra Vol VII No. V (November 08)

Rakshitra Vol VII No. VI (December 08)
Rakshitra Vol VII No. VII (January 09)
Rakshitra Vol VII No. VIII (February 09)
Rakshitra Vol VII No. IX (March 09)
Rakshitra Vol VII No. X (April 09)
Rakshitra Vol VII No. XI (May 09)
Rakshitra Vol VII No. XII (June 09)
Rakshitra Vol X No. VIII (February '12)
Rakshitra Vol VIII No. I (July 09)
Rakshitra Vol X No. IV (October 12)
Rakshitra Vol VIII No. II (August 09)
Rakshitra Vol X No. V (November 12)
Rakshitra Vol VIII No. III (September 09)
Rakshitra Vol X No. VI (December 12)
Rakshitra Vol VIII No. IV (October 09)
Rakshitra Vol X No. VII (January 13)
Rakshitra Vol VIII No. V (November 09)
Rakshitra Vol. X No. VIII (February '13)
Rakshitra Vol VIII No. VI (December 09)
Rakshitra Vol. X No. IX (March '13)
Rakshitra Vol VIII No. VII (January 10)
Rakshitra Vol. X No. X (April '13)
Rakshitra Vol VIII No. VIII (February 10)
Rakshitra Vol. X No. XI (May '13)
Rakshitra Vol VIII No. IX (March 10)
Rakshitra Vol. X No. XII (June '13)
Rakshitra Vol V No. VII (January 07)
Rakshitra Vol VIII No. X (April 10)
Rakshitra Vol. XI No. I (July '13)
Rakshitra Vol V No. VIII (February 07)
Rakshitra Vol VIII No. XI (May 10)
Rakshitra Vol. XI No. II (August '13)
Rakshitra Vol V No. IX (March 07)
Rakshitra Vol VIII No. XII (June10)
Rakshitra Vol. XI No. III (September '13)
Rakshitra Vol V No. X (April '07)
Rakshitra Vol IX No. I (July10)
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Rakshitra Vol V No. XI (May '07)
Rakshitra Vol IX No. II (August 10)
Rakshitra Vol. XI No. V (November '13)
Rakshitra Vol X No. IX (March '12)

Rakshitra Vol X No. X (April '12)
Rakshitra Vol X No. XI (May '12)
Rakshitra Vol X No. XII (June '12)
Rakshitra Vol XI No. I (July '12)
Rakshitra Vol X No. II (August '12)
Rakshitra Vol X No. III (September 12)
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sub-section ofof this
this Newsletter.
Newsletter.
The
Theviews
views expressed
expressed in
in the
the articles
articles by
by the
the authors
authors are
are their own and CCIL does not accept
accept any
any responsibility.
responsibility. CCIL
CCIL shall
shall not
not be
be liable
liable totoany
any
member
memberororany
any other
other person
person for
for any
any direct
direct consequential
consequential oror other
other damages
damages arising
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Rakshitra December Issue

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Rakshitra December Issue

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December 2013

Repo Market - A Tool to Manage Liquidity in Financial Institutions

Report on Trend and Progress of Banking in India - 2012-13

Key Macroeconomic Indicators

Outstanding Government Debt

Primary Market Analysis

Government Securities Market

Foreign Exchange Market

Interest Rate Movement

DOMESTIC INDICATORS ......................................................................................................... 78

WORLD ECONOMIC INDICATORS ...................................................................................... 80

OUTSTANDING GOVERNMENT DEBT .............................................................................

STATE DEVELOPMENT LOANS (SDLS) OUTSTANDING............................................

CONSOLIDATED OUTSTANDING .......................................................................................

ANALYSIS OF OUTSTANDING BONDS ..............................................................................

INDEX COMPOSITION .............................................................................................................. 93

INDEX PERFORMANCE ANALYSIS .....................................................................................

SECURITIES & MONEY MARKET (PRIMARY) : COMPARATIVE DATA ..................

LIQUIDITY ANALYSIS ................................................................................................................ 96

CCIL SETTLEMENT DETAILS ................................................................................................. 97

CATEGORYWISE BUYING ACTIVITY ..................................................................................

CATEGORYWISE SELLING ACTIVITY ................................................................................

COMPARABLE RATES (%) ......................................................................................................... 99

GOVERNMENT SECURITIES MARKET

PROPRIETARY / CONSTITUENT SETTLEMENT ANALYSIS .......................................... 100

DEAL SIZE ANALYSIS ................................................................................................................. 100

INSTRUMENT WISE BREAKUP OF OUTRIGHT TRADES ........................................... 101

TENOR WISE ACTIVITY - CENTRAL GOVERNMENT DATED SECURITIES ......

NETTING FACTOR - FUNDS ................................................................................................... 103

NETTING FACTOR: SECURITIES ........................................................................................... 103

LIQUIDITY ANALYSIS FOR CENTRAL GOVERNMENT SECURITIES TRANSACTED

MARKET SHARE OF TOP 'N' SECURITIES ........................................................................ 107

MARKET SHARE OF MEMBERS IN OUTRIGHT SETTLEMENT ................................. 107

MARKET SHARE OF TOP FIVE MEMBERS (CATEGORYWISE) ................................... 108

TRADING PLATFORM ANALYSIS OF OUTRIGHT TRADES ........................................ 108

WHEN-ISSUED TRADING DETAILS ..................................................................................... 109

WHEN-ISSUED TRADING - HISTORICAL ......................................................................... 109

MARKET SHARE IN PROPRIETARY TRADES ...............................................................

MARKET SHARE IN CONSTITUENT TRADES ................................................................ 110

TURNOVER RATIO .................................................................................................................... 110

NET MARKET ACTIVITY IN G-SEC TRADING ................................................................ 110

TRADING SUMMARY ................................................................................................................

G-SEC TRADING ANALYSIS ....................................................................................................

T-BILL TRADING ANALYSIS ...................................................................................................

SDL TRADING ANALYSIS ........................................................................................................

LIQUIDITY OF TRADES GREATER THAN 5 CRORE (G-SEC) ....................................

LIQUIDITY DISTRIBUTION (G-SEC) ....................................................................................

MONEY MARKET COMPARISON .......................................................................................... 118

REPO TERM ANALYSIS .............................................................................................................. 119

INSTRUMENTWISE SETTLEMENT OF REPO TRADES ................................................

CROMS TRADING ACTIVITY .................................................................................................. 120

CROMS HISTORICAL SUMMARY............................................................................................ 121

TOP 5 SECURITIES - BASKET REPO .....................................................................................

TOP 5 SECURITIES - SPECIAL REPO ....................................................................................

DEALT TRANSACTIONS ON THE NDS-CALL PLATFORM .......................................... 122

OTC DEALS REPORTED ON THE NDS-CALL SYSTEM .................................................. 123

NDS-CALL HISTORICAL .................................................................................................

FOREIGN EXCHANGE MARKET

FOREX SETTLEMENT ................................................................................................................

FOREX TRADE TYPE ANALYSIS ...........................................................................................

FOREX DEAL SIZE ANALYSIS ................................................................................................

TENORWISE FORWARD TRADES ANALYSIS ...................................................................

MARKET SHARE - FOREX ........................................................................................................ 127

CATEGORYWISE FOREX ACTIVITY - DEAL TYPE ........................................................