The government had breached its fiscal deficit target given in the Budget for 2017-18 in November itself, touching 112 per cent of the limit.
The unexpected interest rate hike by the RBI on Wednesday will have the banking system on average making a 10-15 bps gains on the yields, with private banks making larger gains as 57 per cent of their loans are linked to external benchmark rate and 40 per cent to the marginal cost of lending rates, as per a report. Stating that lenders and borrowers will face volatile times with the Reserve Bank raising the repo rate by 40 bps to 4.40 per cent and the cash reserve ratio (CRR) by 50 bps on May 4 in an off-cycle policy move, India Ratings said the market rates had already been moving higher before the move. The 364-day T-bills have moved up 120 bps and 10-year G-sec by 140 bps since May 2020, when the repo rate was cut to a record 4 per cent, which led to an expectation of a faster and sharper rise in interest rates in the system but the central bank stayed the course to support the fragile economy battered by the pandemic.
These cash shortages increase banks' funding costs, making it harder for them to lower lending rates
If rate cuts are fully transmitted, and RBI continues to cut rates in 2016, and earnings growth picks up as well, current valuations may be justified. Otherwise, equity will remain over-valued, says Devangshu Datta.
Amid the din in which BJP and Congress members tried to shove each other and some members banged the door leading to the secretary general's desk, Birla adjourned the House for the day.
But their trajectory and direction have been largely influenced by politics and the political leadership's understanding of how the economy needs to be managed, explains A K Bhattacharya.
Devangshu Datta believes you should pick stocks trading at much lower valuations than the market average.
'An era of fiscal pessimism is setting in, which, if not countered intellectually, is going to have the same effect as export pessimism has had,' notes T C A Srinivasa Raghavan.
Union minister Mukhtar Abbas Naqvi said a "headless Congress" has now also become "brainless".
While seven of the suspended MPs belonged to the TMC, six were from the DMK, three from the Telangana Rashtra Samithi, two from the Communist Party of India-Marxist and one from the Communist Party of India.
The Reserve Bank of India on Friday decided to leave benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance as the economy faces heat of the second Covid wave.
Bankers need to take a call on whether they will allow technology firms to run banks or banks themselves will turn into tech firms, says Tamal Bandyopadhyay.
While the likelihood of these states going the Lanka or Greece way may be an alarming assessment, the financial situation of some states such as Punjab and West Bengal is indeed quite weak.
The Congress leadership has become stunted, it does not understand agriculture and the party is trying to mislead farmers for its own vested interests, said Union Agriculture Minister Narendra Singh Tomar.
The new norms provide an operational framework for FPIs, a new class of overseas investors that club all existing class of investors like foreign institutional investors and Qualified Foreign Investors.
These investors have pumped in about Rs 6,900 crore (Rs 69 billion) in the seven trading sessions after the Federal Open Market Commission meet.
the Opposition looks to corner the Union government over issues like economic slowdown and situation in Kashmir while the Narednra Modi dispensation seeks to push through the contentious Citizenship (amendment) Bill, a key part of the Bharatiya Janata Party's ideological agenda.
The Monsoon Session of the Lok Sabha was adjourned sine die on Friday after 19 sittings that saw the passage of 14 legislation while Rajya Sabha came to an end after passing nine bills.
The BJP MP condemned Azam Khan's disgraceful and sexist remark against her and said she would request the Speaker of the House to dismiss him.
This after high drama in the House over what opposition charged was "intimidation" by the treasury benches to get the motion for sending the amendment to the RTI Act to the select committee rejected.
Catch all the debates from the Upper and Lower House of Parliament.
The RBI governor has to convert the zero-sum game with the government from a non-cooperative one -- which his two predecessors had made it -- to a cooperative one, explains T C A Srinivasa Raghavan.
Senior bankers are trying to impress upon the central bank that the shift to external benchmark-linked lending be postponed to April 1, 2020.
"Features of the Bill are anti-people and anti-Constitution...it is a very dangerous act," the fiery TMC MP said.
Sarojini Naidu, Mother Teresa or Savitribai Phule?
If the interest rate on bank deposits is linked to any external benchmark, it would jeopardise the banks' fund-raising ability. Interest rates on small savings schemes are likely to be reduced very shortly, to maintain parity. All these steps would indeed affect retired people, and particularly those dependent on interest income, says Arindam Gupta.
The money generated, expected to be more than a billion dollar per annum, would be used to fund a biometric entry and exit tracking system
After months of denying there was a liquidity problem, Governor Raghuram Rajan has reversed course.
'Investors should restrict themselves to a few category schemes with high quality portfolios apart from overnight and liquid funds.'
Shah said nobody can stop him from introducing a resolution on Kashmir in Parliament.
Banks argued that loans of most lenders are funded primarily by retail deposits and not from the wholesale market as was the practice abroad
What makes Indian abstract art more valuable is its relative rarity. V S Gaitonde, S H Raza and J Swaminathan are the only major names in modern Indian art known for their abstracts.
While the tax treatment does legitimise past crypto transactions, there is a possibility that any, or all, private cryptocurrencies will be banned in future.
Bollywood starts partying early this week!
Naidu said have shown no remorse and have instead justified their actions.
As per the rules and regulations, members must not do anything that brings disrepute to the Parliament and affects their credibility, and members must utilise their position as Members of Parliament to advance general well-being of the people.
Depreciating the rupee against the dollar to boost economic growth has fiscal constraints and monetary limitations
The ruckus began during the procedure for the introduction of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020.
Joshi said the Congress is 'led by an infiltrator' and is targeting Modi who hails from a humble family and is a popular leader.
'We began foolishly bragging about Saudi-Emirati investment plans as indicative of the sheikhs 'distancing' from Pakistan, including on Kashmir,' notes Ambassador M K Bhadrakumar.
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