Inter Corporate Deposits

For short term cash management of the rich corporates, the company offers to borrow through Inter corporate deposits. The company has P1+ credit rating (Highest Rating in its category) for an amount of Rs. 250 crores.

The company offers two variables of the Inter Corporate Deposits:

Fixed Rate ICD : the quantum/ rates/ term to maturity of the ICD are negotitaed by the two parties at the beginning of the contract and remains same for the entire term of the ICD. As per the RBI guidelines the minimum period of the ICD is 7 days and can be extended to peiod of 1 year. The rates are generally linked to Interbank Call Money Market Rates.

Floating Rate ICD : Corporates interested in using the daily volatility of the call money market are offered Floating Rate ICD which may be benchmarked/ linked to either NSE Overnight Call/ Reuters Overnight Call rates. The corporates are also given Put/ Call option after 7 days for managing their funds in the event of uncertainity of availability of idle funds.