Banks have issues with their balance sheet profiles, say PSB executives.
Addressing bankers and economists at Bancon 2013, a flagship event of the Indian Banks' Association, Chidambaram told the lenders to deal firmly with wilful defaulters, but handhold those who are reeling under the impact of the economic slowdown.
The impact of Shinzo Abe's towering personality is such that even in death, Abe remains a polarising figure, asserts Dr Rajaram Panda.
Rajan strongly defends RBI's decision to hold the key rates in the absence of any new data points.
Currently, FPIs can invest up to $30 billion in Government securities, of which $5 billion is reserved for long-term investors.
Getting out of the zero-rate armchair was overdue, and many in the market will be glad it has finally happened
To a specific question on the change in RBI's stance from "neutral" to "accommodative", Das said it means that there will not be any rate hike from here on.
The change from wholesale to retail inflation as an anchor means that the weightage of diesel in inflation has decreased
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The RBI said lead indicators point to continuing sluggishness in domestic economic activity in the first quarter of 2014-15.
At 12:25 PM, the barometer index, the S&P BSE Sensex was down 358 points or 1.3% at 26,368.
While most economies contracted in the second quarter of 2020, the Chinese economy grew by 3.2 per cent.
Bajaj Finance was the biggest loser in the Sensex pack, tanking up to 8 per cent, followed by Hero MotoCorp, IndusInd Bank, Maruti and HCL Tech. Axis Bank, ITC, NTPC and M&M were among the top gainers.
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.
'We all wanted a strong Centre with a decisive mandate from the people, to allow them to take bold decisions.'
Currently, banks follow system of internal benchmarks, including Prime Lending Rate, Benchmark Prime Lending Rate, Base rate and Marginal Cost of Funds based Lending Rate.
There are glaring anomalies with Indian data and that could lead to wrong policy prescriptions.
Insufficient rainfall will have a negative impact on the economy.
Government's food subsidy bill tends to rise in tandem with the MSP increase.
By piling more pressure on governments, central banks risk not accomplishing much and yet provoking a political backlash that could threaten their independence.
Seeking to dispel possible notions of the RBI not having done enough by opting for a pause for the second consecutive time, Das said the RBI has a wide dashboard of instruments beyond rates that can be deployed.
India's gross domestic product growth rate slipped to 7%.
The government should now focus on governance and monitoring the supply side to manage inflation, says M V Subramanian.
If banks have a surplus, they have the option of parking the money with the RBI.
"We are facing a global health crisis unlike any in the 75-year history of the United Nations -- one that is killing people, spreading human suffering, and upending people's lives. But this is much more than a health crisis. It is a human crisis," Guterres said.
Analysts say that the focus now shifts to global events
'Rajan's exit will have a great impact on the economy.'
With the 50 bps rate cut now more banks are expected to reduce their base rate.
The S&P BSE Sensex gained 57 points to end at 26,064 and the Nifty50 climbed 17 points.
Mr Swamy has written letters to the Prime Minister's Office asking for Mr Rajan's services to be terminated.
The prospect of further falls in remittances is a hindrance for the Reserve Bank of India, as it seeks to bullet-proof the economy against sudden capital outflows
The uncertainty over the gravity of the pandemic's impact on the global economy and financial markets worldwide triggered a flight to safety among foreign investors as they rushed to exit from relatively riskier investment destinations, such as emerging markets like India, a report said.
The first signs of growing bonhomie between Modi and Rajan came early last year, when Modi called Rajan the "best teacher" for explaining complex economic issues to him.
Benchmark indices failed to hold on to early gains and closed in the red for the seventh straight session on Thursday, with participants remaining in wait-and-watch mode ahead of the RBI's interest rate decision. Unabated selling by foreign funds added to the pressure, though a modest recovery in the rupee cushioned the fall, traders said. After rallying in early trade, the 30-share BSE Sensex came under selling pressure in the afternoon session and closed 188.32 points or 0.33 per cent lower at 56,409.96.
RBI Governor Shaktikanta Das said the central bank saw economic growth slowdown in February, prompting it to cut rates ahead of the curve and wondered why markets were surprised with the decision to pause rate reduction. Noting that there is a need for an "informed and objective discussion" on the country's economy, Das said the RBI would do "whatever is necessary" to address growth slowdown, spikes in inflation as well to ensure good health of banks and non-bank lenders. The apex bank went for five consecutive rate cuts starting in February this year, making it a cumulative reduction of 1.35 per cent.
Rediff.com takes its readers through the various moods of Raghuram Rajan.
Monetary transmission has been an issue for the Indian banking sector.
This is the first time in the RBI's history that a governor is leaving without willing to renew his contract
HR Guru Mayank Rautela offers practical advice.
Experts disagree with the idea and the Reserve Bank of India (RBI), which has the sole right to print money, is not comfortable with it as well.
Expressing disappointment over the contraction in industrial growth in October, India Inc has appealed to the Reserve Bank to cut interest rates to revive the manufacturing sector and ameliorate investments.
