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
The Consumer Price Index (Combined) inflation for May 2022 printed at 7.04% as compared to 7.79% in the previous month
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Headline WPI inflation
Headline WPI inflation for May 2022 printed at 15.88%, marginally higher than 15.08% in April 2022.
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IIP growth
IIP growth for April 2022 printed at 7.14%, marginally higher than the reading of 2.20% in March 2022, on a year-on-year basis.
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Real gross domestic product
Real gross domestic product for Q4FY22 noted a growth of 4.1% on a year-on-year basis, aided by a pickup in activity across segments. Also, GDP expanded by 5.2% on a quarter-on-quarter basis and by 6.7% from Q4FY20 levels.
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The MPC
The MPC unanimously decided to hike the policy Repo rate by 50 bps in the MPC meeting held on June 08, 2022. Consequently, key policy rates stand as follows: Standing Deposit Facility rate at 4.65%, Repo rate at 4.90% and Marginal Standing Facility and Bank rate at 5.15%.
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