After over four days of out-of-bounds for customers due to technical glitches, which created an online furore against the bank, the largest private sector lender HDFC Bank Monday pulled down its troublemaking new mobile banking app.
The National Stock Exchange Monday said it has introduced futures on overnight call rate (Mibor) to provide participants an opportunity to manage risk exposures. Mibor (Mumbai Inter-Bank Offer Rate) is the interest rate at which banks borrow from another for short term purposes. “It is important to develop tools to help institutions manage interest rate risk.
The futures on MIBOR, which is one of the key barometers of India’s overnight borrowing and lending, is being introduced with the objective of providing a hedging instrument for interest rate risk,” said NSE’s managing director and chief executive Vikram Limaye.
On the first day, turnover (notional) in Mibor futures was Rs 185 crores. The participation was from financial institutions like banks, primary dealers and from the brokers, the NSE said in a release. Financial Benchmarks India Pvt Ltd announces the overnight Mibor on a daily basis except holidays.