STCI Primary Dealer Ltd.

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Inter- Corporate Deposits


 
An Inter-Corporate Deposit (ICD) is an unsecured borrowing by corporates and FIs from other corporate entities registered under the Companies Act 1956. The corporate having surplus funds would lend to another corporate in need of funds. This lending would be an uncollateralized basis and hence a higher rate of interest is demanded by the lender. The short term credit rating of the borrowing corprorate would determine the rate at which it would be able to borrow funds. Further the credit spreads demanded even for the top rated corporates would be higher than similar rated banks and the rates on ICDs would higher than those in the Certificate of Deposit (CD) market. The tenor of ICD may range from 1 day to 1 year, but the most common tenor of borrowing is for 90 days.
 
Primary Dealers are permitted to borrow in the ICD market. The borrowing under ICD is restricted to 150% of the Net Owned Funds and the minimum tenor of borrowing is for 7 days. Primary Dealers cannot lend in the ICD market.
 
STCI Primary Dealer Ltd. borrows funds in the ICD market. The company has a credit rating of ‘A1+’ from ICRA and CRISIL for its Short Term Debt Programme. Corporates interested in placing deposits with us may contact on 022 6620 2213/232.
 
 
 

Latest News

The CPI-AUGUST
The Consumer Price Index (Combined) inflation for August 2021 printed lower at 5.30% as compared to the reading of 5.59% in the previous month.
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Headline WPI inflation for August 2021
Headline WPI inflation for August 2021 printed at 11.4%, marginally higher than 11.2% recorded in July 2021, due to a surge in prices of primary articles and manufactured products
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IIP growth for July 2021
IIP growth for July 2021 printed at 11.5% as against the reading of 13.6% in June 2021, on a year on year basis.
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Real gross domestic product for Q1FY22
Real gross domestic product for Q1FY22 noted a growth of 20.1% on a year on year basis, largely due to favorable base as GDP contracted by a massive 24.4% in Q1FY21. However, GDP contracted by 16.9% on a quarter on quarter basis and by 9.2% from Q1FY20 levels.
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Third bi-monthly monetary policy for FY22
In the third bi-monthly monetary policy for FY22, the RBI Monetary Policy Committee unanimously decided to maintain status quo on policy rates. MPC continued with the state-based forward guidance. All members, except Prof. Jayanth R. Varma, voted to continue with the accommodative stance as long as necessary to revive growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.
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