The crisis in confidence in the banking sector is easing. Banks in Europe and America have taken substantial losses both in their proprietary trading departments and in their loan portfolios.
'Most importantly, marking a departure from the past, the RBI has made it clear that it is not overtly worried about the level of the local currency,' notes Tamal Bandyopadhyay.
The Securities and Exchange Board of India (Sebi) on Thursday said it would soon put the fixed maturity plans (FMPs) and close-ended income schemes of mutual fund houses on the fast-track route.
Central banking is a science, not an art, Tamal Bandyopadhyay tells RBI Governor Shaktikanta Das.
Based on investment aims, mutual funds categorise their schemes as growth, income, balanced and money market schemes.
The Bombay Stock Exchange may longer enjoy the exclusivity over the reporting platform for the corporate bond market
With huge liquidity in the money market, partly contributed by capital flows, the interest rates are expected to soften in the short term, according to Industrial Development Bank of India chairman V P Shetty.
The government has raised Rs 5,000 crore from the money market, outside its scheduled borrowing programme for the first half of the current fiscal, to takeover the Reserve Bank's 59.73 per cent stake in State Bank of India (SBI) by the month-end.
The Western Vidarbha region comprising three districts of Akola, Washim and Buldana recorded bids of over Rs 50 crore (Rs 500 million) in the IPO that had opened on January 15, according to banking and private money market sources.
Select markets like the Bombay Stock Exchange, National Stock Exchange, Foreign Exchange and the Money Market will remain closed on Friday.
Insurance firms have designed amazing retirment plans to lure more customers.
Flush liquidity, apart from softening short-term money market rates, poses inflationary risks.
In a meeting with Reserve Bank of India Deputy Governor Rakesh Mohan on Monday, bankers expressed concerns that interest rates had not shown signs of softening despite ample liquidity and overnight rates being at close to 1 per cent levels.
Some funds may get a direct bite of the infrastructure pie, while taxes add unwanted weight to others.
Select markets like the Bombay Stock Exchange and the National Stock Exchange, the Foreign Exchange and the Money Market will remain closed on Monday, April 14 on account of Ambedkar Jayanti.
The bank has increased its spreads or mark-up over base rate paid by a borrower by 0.10 per cent.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, will answer your queries.
The rupee extended gains for the fourth straight day against the US currency on Thursday.
The central government's deposits with the RBI had fallen to just Rs 100 crore as of June 8.
In forward market today, premium for dollar declined on sustained receivings from exporters.
The interbank foreign exchange (forex), call money markets, cotton, metals, sugar and future trading in castor seeds will remained officially closed on Friday on the occasion of Ramnavami.\n\n\n\n
Liquidity is expected to remain comfortable this week, albeit the rate at which it is available may inch up rather than remaining below 1 per cent.
There is no shortage of liquidity, so interest rates in the overnight call money market continue to stay below 1 per cent.
Money market rates touched nine-year highs on Tuesday as the liquidity squeeze in the banking system worsened. The overnight call money rate touched 60 per cent intra-day.
Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.
From the markets' perspective, a greater predictability of the RBI's intervention will give them a space to operate in.
Banks argued that loans of most lenders are funded primarily by retail deposits and not from the wholesale market as was the practice abroad
At gross level, MFs mobilised Rs 43.67 lakh crore (Rs 43.67 trillion) in August.
Mutual funds are a convenient way to invest in the stock markets
Exporters of commodities from India are facing a strange situation now.
If you are looking for a fixed income avenue that yields a reasonable return with minimum risk, adequate liquidity and tax efficiency, FMPs will provide you with an effective shelter.
As Prime Minister Narendra Modi visits US, fund managers from India and abroad expect improving sentiments and impressive returns from Indian markets to help attract billions of dollars flowing into the country's asset management industry.
The tightness in liquidity will be much more pronounced as banks are expected to borrow to expand their balance sheets to meet annual targets
The strong inflow in MF schemes coincided with a gain in BSE's benchmark Sensex by two per cent last month.
The overnight call rate is seen in a range of 8-10 per cent till mid-February, as banks would take some time to soften credit growth.
The tightness in the liquidity situation escalated on Friday, with the interbank call money rates jumping the highest in six years to close at 19 per cent. The rates had touched 25 per cent intra-day.
A 2008-style bank run seems unlikely, but if it did happen, the sector is much better prepared.
Wednesday's hawkish and essentially courageous decision underscores that Governor Urjit Patel will largely represent continuity, rather than a break, with the policies and approach of his predecessor, says Richard Iley.
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