CIT seeks quotations from commercial banks for Fixed Deposit

ShareSansar, December 19:

In yet another sign of surplus liquidity in the market, the state-run Citizen Investment Trust (CIT) has asked commercial banks to submit sealed quotation proposing the interest rate for a fixed deposit that the Trust wants to make. This time CIT didn’t disclose the amount they want to invest.
 
Issuing a notice today, CIT has sought quotations from each of the interested commercial banks for the fixed deposit for the period of one year, respectively.
 
Established in 1990 under the special act called the Citizen Investment Trust Act, CITs areas of activities include the operation of retirement schemes, unit trust schemes and the capital market service.
 
It would be interesting to see how the commercial bank will respond to the notice as they are already slashing their interest rate as they struggle to find enough of proper investment opportunity.
 
Note that the treasury bills rate hover around all time low of below 0.5% and also the weighted average interbank lending is at 0.14%.