P V Subramanyam clears some misconceptions about debt funds.
Bank of Baroda's subsidiary Bobcards Ltd will slash the interest rate on its credit cards to lowest ever level of 1.49 per cent per month, a move that will trigger off another rate cut war among banks and card issuers.
State Bank of India's chairman O P Bhatt on Monday said that interest rates are likely to go up in the coming months if the Reserve Bank of India (RBI) tightens its monetary stance.
State Bank of India and ICICI Bank, two of India's largest banks, on Tuesday said that there would be no immediate hike in interest rates due to the Reserve Bank of India's decision to increase the cash reserve ratio in banks to curb inflation.
BoI, Union Bank follow, earnings to be impacted.
Public sector State Bank of India has hiked its interest rates on FCNR (B) deposits in GBP (Pound Sterling) up to five years as also on Euro deposits of up to two years maturity.
The RBI is fully aware that the high-cost loans and high indebtedness of the borrowers could pose financial stability risks, if not addressed by these NBFCs. Governor Shaktikanta Das has issued a stern warning, saying the RBI is closely monitoring these areas and will not hesitate to take appropriate action, if necessary, if the culprits don't opt for self-correction. Watch out for some action, soon, notes Tamal Bandyopadhyay.
ABN Amro may hike interest rates by 25-40 basis points by middle of 2006 and 50-70 basis points by the end of the year.
In the Sensex pack, Mahindra & Mahindra tanked over 6 per cent after the company cut the prices of its SUV models to boost demand. Mahindra & Mahindra said its XUV700's fully-loaded AX7 range now starts at Rs 19.49 lakh, a price cut of over Rs 2 lakh. Tata Steel, Tata Consultancy Services, HCL Technologies, State Bank of India, JSW Steel, Tata Motors and Kotak Mahindra Bank were other losers.
Ahead of RBI policy meet, India Ratings said an interest rate hike of 0.50 per cent in the remaining part of the fiscal will throw the BSE 500 companies into a quandary.
With RBI's repo rate cut and strong macroeconomic fundamentals like benign inflation, strong forex reserves and stable rupee, GDP growth is expected to be higher and interest rates are poised to touch new lows, PNB Gilts has said.
Two days after the repo rate cut, the Reserve Bank of India governor Bimal Jalan on Monday said the soft interest rate bias will continue.
Warning banks on interest rates risks, high transaction costs and NPAs, ICRA said Indian banks are yet to attain global standard in profitability and productivity despite posting over 40% growth in net profit in the first half of this fiscal.
RBI has also announced new guidelines to price loans from April 1.
World manufacturing expansion slowed to 5.2 per cent in the second quarter of 2011 year-on-year from 7.5 per cent in the first quarter.
Hinting at easing of borrowing costs for retail and corporate customers, ICICI Bank's new chief Chanda Kochhar has expressed hope that interest rates could fall to single-digit level in the coming months.
The Employees' Provident Fund Organisation (EPFO) on Friday decided to give 8.5 per cent interest on provident fund deposits of 4.5 crore (45 million) subscribers.
Banks see interest rates staying at the current elevated levels for now.
Bankers, who spoke to PTI, point to the above indicators and aver the Reserve Bank of India is unlikely to hike reverse repo and repo rates this month.
The boards of three PSU banks - Bank of Baroda, Oriental Bank of Commerce and Andhra Bank met in deference to the Finance Ministry's insistence, but quite unexpectedly they did not roll back the rate hikes announced last week.
ITC, State Bank of India, HCL Technologies and IndusInd Bank were the other big laggards. NTPC, UltraTech Cement, HDFC Bank and Mahindra & Mahindra were among the gainers.
Interested in interest rate futures? Here's all that you need to know about them:
Borrowers, especially those eyeing housing loans in coming months, may not have to worry much as bankers ruled out an immediate hike in interest rates.
The Employees' Provident Fund Organisation (EPFO) is crunching its numbers under pressure for sustaining a 9.5 per cent interest rate in the current financial year.
'If the portfolio growth rate is higher, take this loan. If it is lower, liquidate your investments.'
BSE Realty, Capital Goods and Consumer Durables indices were down by 3% each.
Higher interest rates in the US do not necessarily coincide with capital outflows.
State Bank of India announced on Friday a hike in interest rates on fixed deposits by 0.25 to 0.50 per cent with effect from Saturday.
The steady increase in Indian interest rates is making bank deposits a popular investment option among the Gulf-based Non-Resident Indians.\n\n
Borrowers haven't heard the last of interest rate hikes, as more banks are preparing to raise lending rates in the days ahead to offset increase in their cost of funds.
In policy review meet in June, RBI Governor Raghuram Rajan kept interest rates intact.
Part of a focus on retail advances, as corporate demand remains subdued; could reverse if RBI raises repo next month
Finance Minister Jaswant Singh on Tuesday launched the trading of Interest Rate Futures in stock exchanges, which would enable banks, insurance companies and provident funds to hedge risks on interest rate fluctuations.
The rate of interest will be effective from April 1, 2015.
The Reserve Bank of India (RBI) unexpectedly kept the country's policy interest rate on hold on Wednesday, despite calling current inflation too high, citing the prospect of easing retail prices and its concerns about the weak domestic economy.
'Lack of self-control over spending leads to a credit card debt trap.' 'People think they have money and spend using a credit card, but when it's time to pay, they realise they don't have the money.'
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