RBI Governor Raghuram Rajan on Tuesday said the Finance Ministry's decision to provide more capital to PSU banks will lower the borrowing cost and increase their capacity to lend, besides promoting investments.
From liquidity, monetary policy operations to financial inclusion, know about RBI monetary policy
The USTR has placed India on its "priority watch" list for two years in a row, saying the country's patent laws unfairly favour local drug makers.
Gold prices are already moving fast to the key level of Rs 30,000 per 10 gms
The trauma of the deadly earthquake and continuous aftershocks in Nepal have left many of the survivors paranoid and some even mentally disturbed, who are now being treated by psychotherapists pressed into service by humanitarian agencies.
The monetary authority said it was worried on three fronts with regard to inflation as well as the economy.
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A section of the market believes RBI should hold rates as negative real rates will hurt savings and investment.
Director of Operations Christopher Stokes said the non governmental organisation was withdrawing for "operational and human resources reasons".
Will work full day on other Saturdays; bank branches to be shut on 2nd, 4th Saturday from next month
RBI Governor Raghuram Rajan in his maiden policy review, however, eased liquidity though a reduction in the marginal standing facility rate, at which banks borrow from the central bank, by 0.75 per cent to 9.5 per cent.
New Reserve Bank of India chief makes his first monetary policy statement on Friday with expectations he may scale back some of the emergency measures that have helped the rupee bounce from a record low.
The repo rate, at which the central bank lends to the system, will come down to 5.75 per cent after the cut.
Banks have taken this aggressive posture even as liquidity has become comfortable on the back of increased government spending.
Worried over a spike in interest rates in the wake of steps to support the falling rupee, the RBI on Tuesday announced a slew of measures, including Rs 8,000 crore bond buyback, to ease liquidity and ensure adequate credit flow to the productive sectors of the economy.
Of the 52 economists polled, 50 expect the policy repo rate to remain at 7.25 per cent, and 47 of 48 respondents see the cash reserve ratio, or the portion of deposits banks have to maintain with the central bank, unchanged at 4 per cent.
India had the third-largest number of people living with HIV in the world at the end of 2013 and accounts for about four out of 10 people living with HIV in the Asian region.
Mumbai-based Doctors For You, a nation-wide humanitarian organisation which has provided services in several disasters in the last few years, started an OPD camp on September 30 just outside the Rajendra Nagar overbridge roundabout when practically the entire city was inundated.
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Bankers remained ambivalent on the impact of Tuesday's policy announcement by Reserve Bank on the cost of funds and refrained from giving a guidance on the direction in which lending rates are headed.
He endorsed transparency and financial stability in addition to issues related to inclusive growth and development, write Puran Singh and Nupur Pavan Bang.
Expressing disappointment over the hike in repo rate by the RBI, India Inc on Friday said a rate cut by the bank would have helped ameliorate sentiments as businesses are "reeling" under a tight liquidity crunch due to high cost of capital.
The Reserve Bank of India hiked key interest rates by 0.25 per cent each in the last two reviews to tame inflation.
The rupee got a boost as stock market investors cheered the Reserve Bank's steps. Fresh dollar sales by exporters amid sustained capital inflows also supported the local currency.
Financial services firm AnandRathi analysed the key points of the policy soon after it was announced.
Soon after unveiling of the Reserve Bank's mid-quarter policy review, country's largest lender State Bank of India on Friday said lending and deposit rates will go up in view of the festive season demand.
A bit of good news is that it has already mopped up $19 billion in forwards in May.
The government's total debt increased by 2.6 per cent to over Rs 46 lakh crore in the third quarter ended December, compared to the previous three months of the current financial year.
The deadly Ebola virus that has claimed 932 lives so far is now closer to home than imagined. Union Health Minister on Wedensday in a letter to Parliament said that a total of 44,700 Indians are living in different countries affected by Ebola.
The deadly American air strike on a hospital in northern Afghan city of Kunduz that killed 22 people, including women and children, was a mistake, a top US commander in Afghanistan on Tuesday said as he conceded that they were taken by surprise by the recent Taliban upsurge.
Interest rate sensitive stocks gain ground post decision
FPIs, which are holding large exposures in Indian debt, could also be expected to book some capital gains as yields slide down
Expressing disappointment over RBI's decision to hike the key policy rate, real estate developers said this would lead to increase in finance cost and also affect housing demand during the festive season.
Broking firm Jefferies says Indian financial system is now flooded with the kind of liquidity witnessed in 2005-07 and 2009-10
Market breadth depicted gains with 1,476 advances over 1,403 declines on the BSE. 140 stocks remained unchanged.
Banks and realty among the most hit on account of high borrowing costs.
The banking sector in India is reeling under Rs 8 lakh crore of non performing assets (NPAs) or bad loans, of which PSU banks alone account for over Rs 6 lakh crore.
The reason for the stickiness in bond yields can be many, but the most responsible is the liquidity deficit stance taken by RBI, says Anup Roy.
Banks led the decline with Nifty Bank and BSE Bank index dropping over 3% each.
Banks might hold on to lending rates for the time being.
With more than one million people affected by the current Ebola outbreak in West Africa, the World Health Organisation has warned that there is "no early end in sight" to the severe health crisis and called for "extraordinary measures" to stop the transmission of the disease.
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