RBI must balance the need for improving domestic bank credit demand and respond to lower inflation.
Finance Minister Arun Jaitley presented the Union Budget.
It also recommended that the RBI accounting year (July-June) may be brought in sync with the fiscal year (April to March) from the financial year 2020-21 as it could reduce the need for interim dividend being paid by the central bank.
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Reliance, Birla Group, Airtel eye small finance banks.
Brazil, Russia, India & China (known collectively as BRIC) on Sunday sought a re-balancing of representation on the executive board and the International Monetary and Financial Committee of the International Monetary Fund (IMF). The committee is the policy-making arm of the IMF.
Net sales growth for the quarter ended December (Q3FY20) was 4.5 per cent on a year-on-year (YoY) basis for companies that have declared their results so far, compared to an 8.4 per cent rise in the first half of the financial year. This indicates that there could be a further rise in days' sales of inventory.
Finance Commission has got new team who are committed to growth initiatives.
Large urban co-operative banks may come to be solely under the provisions of the Banking Regulation Act, even as the smaller among them are to remain within the exclusive fold of the Registrar of Co-operative Societies. The upcoming changes will bring the curtains down on the vexed issue of dual control of UCBs, which has been in vogue for 54 years. The new framework will affect 1,551 UCBs in the country, which had a total business of Rs 7.36 trillion.
RBI data show one-fifth of all the infrastructure loans are stressed and the share of such loans in overall stressed assets is nearly a third.
Industrialists affirm their belief that the adverse effects of demonetisation and the goods and services tax are finally over.
This Budget plans for an increase to 10.3% of GDP from 9.9%.
Traders are waiting for the earnings season to kick off.
RBI Governor Raghuram Rajan has said falling oil prices act as a cushion for CAD, adding it is time India does away with restrictions on gold imports
Two successive reports, one by Percy Mistry in 2007 and the other by Raghuram Rajan in 2008 had provided the RBI and the finance ministry with blueprints of what to do next. Both reports, unfortunately, was put on ice. The global meltdown saved the RBI. It also saved the finance ministry from having to work on the two reports.
With the 50 bps rate cut now more banks are expected to reduce their base rate.
'Prime Minister Modi stated several times that we shall not let this challenge go away without converting it into an opportunity to undertake systemic reforms.' 'And hasn't that been reiterated in action?'
Data on the real value of the currency against other currencies tells a different story.
The top losers from the Sensex pack are ONGC, Coal India, Vedanta, Reliance Inds and L&T.
'We all wanted a strong Centre with a decisive mandate from the people, to allow them to take bold decisions.'
Nitin Desai suggests some concrete measures to revive investment and boost growth.
Businesses are still taking time to adjust in the new tax regime, which would weigh on growth rates for the financial year closing today.
For existing investors, it may be prudent to redeem their current investments in gilt or dynamic schemes and invest it in short-term funds, if the exit load is not very high, advises Malhar Majumder.
The view among the regulator and the government is that the currency is overvalued
Yet, no bank has been taken to task for its actions, says Harsh Roongta.
The RBI has this year cut interest rates by 110 basis points in four instalments but banks have passed only a part of it to borrowers. Before the last reduction earlier this month of 35 basis points, the bank on an average had passed only 29 basis points out of 75 basis points cut affected during 2019.
Mr Swamy has written letters to the Prime Minister's Office asking for Mr Rajan's services to be terminated.
SBI is the first major state-run bank to hike lending rates after short-term rates rose as a result of the Reserve Bank of India's liquidity tightening moves announced in July.
On Friday, the rupee had gained 9 paise to close at a fresh one-week high of 67.08.
Raghuram Rajan joked he wasn't expecting to win any votes or Facebook 'likes' in the position.
Urjit Patel as the new RBI governor whose focus is on taming inflation has lowered the probability of interest rate cut soon
GST rate cut for real-estate, income transfer scheme, farm loan waivers execution and recapitalisation of PSU banks have the potential to boost India's growth in a few months, says Neelkanth Mishra.
Managing expectations is a challenge for policymakers.
Every political party loves to use the bait of loan waiver to woo the electorate. If their hearts bleed for the poor, they can always use the party funds to pay off the lenders, suggests Tamal Bandyopadhyay.
This comes after the arrest of Syndicate Bank Chairman S K jain.
While an impending rate cut is a good reason to enter debt funds, another is the high valuations in equity markets.
'Retail investors have been selling since the Budget and Foreign Portfolio Investors started selling.' 'Thus far, domestic institutions have picked up the slack, buying enough to keep the major indices from falling off a cliff.' 'However, there has been carnage in smaller stocks and the financial sector has been hit much harder than the major market indices,' points out Devangshu Datta.
Firms that should borrow abroad do not do so enough, and those that should not borrow abroad do.
Banks might hold on to lending rates for the time being.
While India allows 100 per cent FDI in a large number of the sectors, there is a ceiling on foreign investment in sensitive segments like multi-brand retail, insurance, defence and telecom.
Finance Minister Arun Jaitley on Monday presented the Union Budget for 2016-17.
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