The State Bank of India has proposed to the RBI to allow it to charge mark-to-market losses on its balance sheet.
But there are challenges, observes Tamal Bandyopadhyay.
For development finance institution to succeed now, the government must stand like a rock behind it and be patient.
He also affirmed that over time, as the government finances improve, the SLR will be brought down further.
RBI Governor has been under pressure from Finance Ministry.
The 30 share Sensex ended up 183 points at 27,470 and the 50-share Nifty gained 44 points to close at 8,295.
It may be a 'no-go' for banking licences to large industrial houses.
RBI has brought down forecasts of both year-end inflation and growth.
The shares could continue to see outperformance if the Budget assumptions are proved correct
'Policy was more in line with the expectations.'
India's banks rely on overnight borrowings to fund longer-term lending.
The repo rate has been unchanged since January, when the RBI increased it by a quarter percentage point.
The S&P BSE Midcap and the S&P BSE Smallcap indices added 0.5% and 0.7%, respectively
The committee's suggestion that existing commercial banks be allowed to hold payment banks as subsidiaries is also seen as unviable by RBI and the finance ministry.
How investors can tweak their fixed income investments to earn more in the current environment.
T C A Srinivasa-Raghavan recalls a tussle between the government and RBI when Rajiv Gandhi was prime minister and how it was resolved.
If net forex outflows turn out to be relatively high in the next few years, the rupee could depreciate beyond Rs 80 to a dollar by 2022. The causal reasons could, for example, include unmet expectations of FPI and FDI investors about the performance of the Indian economy, sharp rise in prices of imported oil and decrease in FX remittances. The RBI has to ask itself whether guaranteeing future rupee-dollar exchange rates on FX forward contracts is a reasonable way to use its risk-bearing capacity, says Jaimini Bhagwati.
The total quantum of non-performing assets in the Indian banking system increased to Rs 7.33 trillion as of June 2017, from Rs 2.75 trillion in March 2015.
Arun Jaitley had proposed to set up a Public Debt and Management Agency.
With prices unlikely to run up sharply, genuine buyers can start readying deals before the festival season starts.
Assocham expressed concern over the precarious situation that the manufacturing sector is in, observing that if the trend does not reverse with monetary and fiscal measures it would be difficult for the industry to generate jobs.
The Finance Ministry has sought comments from stakeholders.
Reserve Bank Governor Raghuram Rajan is widely expected to hold the key rates citing high inflation at the fourth bi-monthly monetary policy announcement on Tuesday, even though the pro-growth lobby has been wishing for a rate cut.
BSE Sensex ended at 25,549.72 up by 321 points or 1.27% and the Nifty ended 7624.40 up by 97.75 points or 1.30%.
FM says government policies aim to contain inflation, spur growth.
That's the only way to convince those who have money to return to the bank fold, ditching other asset classes, says Tamal Bandyopadhyay.
The RBI will have to focus on constructive change to ensure growth.
Since mid-July, the RBI has taken steps to tighten cash conditions, which have failed to support the rupee but sent bond yields surging, posing a fresh threat to the already cooling economy.
Some of the key proposals of the agenda relate to transforming the banking sector, addressing agrarian distress, countering hate crimes and discrimination, and spurring employment generation.
The cutback on export credit refinance facility is another step towards a shift away from sector-specific liquidity allocations.
RBI said inflation in the second half of the current fiscal is projected at 2.7-3.2%. It retained its GDP forecast for the current fiscal at 7.4%
Institutions will wait till there is more clarity on Budget.
However, the budget arithmetic is slightly optimistic.
RBI had previously cut repo rate by 0.25% each in January and March.
The Reserve Bank of India (RBI) on Thursday paved the way for niche banking by issuing draft guidelines for setting up payment banks and small banks.
India's near-term growth has improved: IMF
The private discoms that join the scheme would only benefit in terms of operational efficiency and there will not be any financial bailout
The Reserve Bank left interest rate unchanged.
'There are deeper, underlying, forces at work and we need institutional arrangements to guard against them.'
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