Moody’s Analytics, a division of global ratings firm Moody’s, has warned that the current government at the center needs to start delivering on its reform promises as business confidence is starting to dip. The firm also warned that meddling in Reserve Bank of India’s powers to manage interest rates could have a bearing on India’s […]
IDFC Ltd said its unit IDFC Bank Ltd has got a license from the Reserve Bank of India for undertaking banking business in India under Section 22(1) of the Banking Regulation Act, 1949. The announcement marks the formalization of an earlier preliminary grant of banking license by the RBI last year. In April last year, […]
National Payments Corporation of India (NPCI), the umbrella organisation for retail payments in India, has awarded the contract to develop a Digital Payments Enablement Platform to RS Software. RS Software is a key provider of outsourcing services to payment processing companies, and counts Visa as its biggest customer. The platform is meant to facilitate & […]
YES Bank, India’s 5th largest private sector Bank, received approval from the Reserve Bank of India to set up International Financial Services Centre Banking Units (IBUs) in Gujarat International Finance Tec City (GIFT). “Establishing the IBU will propel YES BANK’s growth plans further by providing it access to International financial markets, as well as provide […]
The Reserve Bank of India has flagged two key areas of concerns as far as monetary policy is concerned – the threat of poor monsoon, and the return of high inflation due to possible increase in oil prices. “While headline inflation has moderated, price pressures arising from a possible sub-normal monsoon and uncertainties about crude […]
In keeping with the overall decline in lending and deposit rates, Federal Bank has cut the interest rates offered on domestic fixed deposits by 0.50 to 0.25 percentage points. The heaviest cut is in the short-term deposit rate, where interest rate has been cut to 3.5% from 4.00% earlier. On longer-term maturities, interest rate has […]
Pointing to a flattening out of the disinflationary trend, Emkay Global Financial Services said the Reserve Bank of India is unlikely to continue much farther with the ongoing rate-easing cycle. The RBI cut key interest rates by 25 basis points today – the third such cut this year – as inflation showed signs of easing […]
State Bank of India, the country’s biggest bank has expressed concern over continuing weak demand in the economy due to “entrenched disinflationary impetus and weak demand,” and suggested that the RBI should cut key interest rates. While economic growth is moderately strong right now, it said, these factors will impact IIP (Index of Industrial Production) […]
Deutsche Bank said it is likely that the Reserve Bank of India would next cut policy interest rates in early March, and follow that up with more cuts through this year. It also said it was looking at the revised GDP numbers with “some degree of caution”. “The RBI will not only cut in early-March, […]
Reserve Bank of India governor Raghuram Rajan today kept key interest rates unchanged, even as he reduced mandatory cash-reserve requirements for banks in an effort to make more money available for lending. The broad reaction from the market – whether from corporates or financial services industry – was that the development was on expected lines. […]
Almost no one in the analyst community expects Reserve Bank of India Governor Raghuram Rajan to cut key interest rates during his monetary policy review tomorrow. Rajan was widely expected to cut the repo rate, at which RBI lends to the banks, tomorrow, but the governor caught the market by surprise two weeks ago with […]
The recent cut of a quarter of a percentage point in key interest rates by the Reserve Bank of India will not have any immediate impact in rates charged by banks on loans, DBS Bank said in a note. It also said the RBI is likely to go for another 50bp reduction in interest rates […]
The Reserve Bank of India is very likely to start cutting India’s key interest rates early next month, CARE Ratings said after India’s December consumer inflation number came in at a manageable 5%. It was widely expected that the recent fall in consumer inflation could undergo some reversals in December and January, and the falling […]
State Bank of India, the country’s largest bank, said it expects the Reserve Bank of India to cut key interest rates only after sees a “sustained” downward trend in inflation, and this is likely to take at least 2-3 months more. “We maintain that RBI may go for the rate cut in a decisive manner […]
The HSBC India Purchasing Managers’ Index (PMI) – a composite indicator designed to give an accurate overview of manufacturing operating conditions – reached a 21-month peak in November, the bank said. However, inflationary pressures intensified during the month, following three consecutive months of easing, HSBC said. “Among the surveyed sub-categories, the sharpest increase in purchase […]
Goldman Sachs has changed its interest rate call for India and now expects the Reserve Bank to cut key interest rates by 25bps each in February and April. It had earlier seen rates unchanged in the first half of 2015. “The main driver of this view is our commodities team’s forecast of weak oil prices […]
With wholesale inflation dipping to record lows, industry asssociations have renewed their calls for an immediate cut in interest rates. ASSOCHAM for example has sought a repo rate cut of up to 50 basis points (bps) in its fifth bi-monthly monetary policy review scheduled on December 2nd, if monsoon forecast for 2015 is normal, crude […]
Rating agency Moody’s said the Reserve Bank of India’s new guidelines on exempting long-term from reserve requirements will allow banks to compete more effectively in the infrastructure loan market. “The new regulations are also likely to foster an improvement of banks’ competitive positioning vis-à-vis housing finance companies and infrastructure finance companies, because the banks’ lower […]
Barclays has projected a consumer inflation rate of 7.0-7.5% for India in the current financial year, below the 10% level seen last year, despite the threat of a weak monsoon pushing up food prices. This would allow the Reserve Bank of India more leverage in reducing rates, it said. “The IMD (met dept) expects rains […]
Bank of America Merrill Lynch, a financial conglomerate, has said that it saw banks cutting interest rates in the upcoming slack season starting September. It said, with the RBI keeping its rates on hold as part of its monetary policy review yesterday, chances of a ‘long hold’ of Reserve Bank’s interest rates are now high. […]
