Currently, the promoters' holding in the bank is at 62 per cent.
RBI has resisted pressure on a package for NBFCs, but permitted banks not to classify defaulters in MSME, realty.
"USDINR pair is expected to quote in the range of 71.70 and 72.30,” said Motilal Oswal Financial Services.
RBI’s push comes even as bank credit at 7.1 per cent is at a 58-year low.
As per the government figures, out of 2,547 plots allotted to businessmen in 26 industrial estates, only 1,444 are functional, 323 are non-functional, 479 remain under establishment, 191 units have taken no steps. The situation has worsened for the businesses since J&K Reorganization Bill was passed and communication and Internet curbs were put in place.
While SBI Cards’ valuation looks aggressive, it reflects the faster growth in the Indian market.
The reversal date of LTRO on March 2, 2020 is March 1, 2023 while for LTRO to be conducted on March 9, 2020, it will be March 7, 2023, RBI said.
The Central Bank has allowed the Bandhan Bank to open branches without its prior approval.
The RBI was responding to a PIL seeking the HC's direction to the central bank to direct banks to take action against their employees for joining union-led strikes as it caused great financial damage to the nation and adversely affected consumers.
The coronavirus outbreak has brought a large part of the world's second-largest economy China to a standstill and its impact has been felt across industries. On January 30, the World Health Organization (WHO) declared the coronavirus (COVID-19) outbreak a global health emergency. The impact on India is felt through supply chain disruptions from China as well as regional players, who in turn are net importers from China.
Crude prices edged up on Wednesday as investors covered short positions after three sessions of losses, even as fears deepened that the rapid spread of the coronavirus will lead to a global pandemic.
BPCL has procured 500 million barrels of distress crude (five shiploads) at a discount of $3-5 per barrel.
“You must retire when people ask ‘why’ and not ‘why not’,” Das said, quoting cricketer Sunil Gavaskar.
Overall, the digital payments in the country have witnessed a growth (CAGR) of 61 per cent and 19 per cent in terms of volume and value, respectively over the past five years, demonstrating a steep shift towards digital payments. "Cash still rules but is increasingly seen as a way to store value as an economic asset rather than to make payments," it said.
Lenders say they will not avail the benefit till there is clarity as any miscalculation in CRR could invite penalties.
Banks would continue to be in a position of primacy in finance with them adopting technologies, RBI chief Shaktikanta Das said.
Former RBI governor C Rangarajan said that supply side shocks should be the responsibility of the govt.
Losses in the rupee have remained capped as FIIs continued to pour funds into equity and debt segments.
Bank loan may grow at about 6% this fiscal, while gross credit off take may rise 8-9% in FY21, Crisil said.
In a bid to keep inflation under specified level, the government in 2016 had decided to set up Monetary Policy Committee headed by RBI Governor entrusted with the task of fixing the benchmark policy rate (repo rate). The six-member panel, which had its first meeting in October 2016, was given the mandate to maintain annual inflation at 4 per cent until March 31, 2021 with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent.
Annual gross domestic product growth likely rose to 4.7% in the last quarter of 2019 from 4.5% the previous quarter, when the growth rate appears to have bottomed out, a Feb. 18-24 Reuters poll found. About 90% of economists in the poll forecast growth for the October-December quarter at 5% or below.
Reserve Bank of India Governor Shaktikanta Das has said four banks under the Prompt Corrective Action (PCA) framework are taking efforts and they are being monitored.
Bankers said sale to ARCs remains an option, but not the first priority unless their price expectations are matched.
Mauritius should not fall in this category but they have not taken necessary steps to prevent money laundering through that country, says the Managing Partner of TP Ostwal & Associates’.
RBI froze lender’s expansion as owners could not cut 61% stake further.
There may not be a need for any “further significant loosening of monetary policy stance.”
Dhanlaxmi Bank was removed from the RBI PCA framework, subject to certain conditions and continuous monitoring, as the bank is found to be not breaching any of the risk thresholds of the framework.
Currently, the bank’s CFO S Sundar, is in charge as interim CEO.
Headline inflation, measured by CPI inflation, increased to 7.4% in December, highest since July 2014.
This was a long-pending suggestion of foreign investors that was addressed in Budget this year.
The members of the board of Reserve Bank of India (RBI) have drawn finance minister Nirmala Sitharaman’s attention to the inefficacy of the government’s PM-Kisan Scheme and the plight of housing finance companies (HFCs) during their interaction with her last week.
The challenge before banks is to make the best use of technology and innovation to bring down intermediation costs while protecting their bottom lines, says Das.
Here is a weekly tracker of Sensex, gold prices, bond yields and inflation. The tracker keeps you updated about the changes in the past year so that investors can get an idea of how their investments performed over a long-term.
On January 30, the bank had informed about RBI's in-principle acceptance for reducing promoters' shareholding to 26 per cent of the PUVESC of the bank within six months from the date of final approval of the regulator. The RBI had asked the bank to cut promoters' shareholding to 20 per cent of paid-up capital by December 31, 2018, and 15 per cent by March 31, 2020.
Hinduja Group is partnering with Cerberus Capital Management LP to pick up a stake in the bank.
Patra said indicators were not offering evidence yet that the downturn was bottoming out.
In March 2019, the RBI announced deferral of IndAS till further notice.
The study notes that there is an increasing preference for FDI as an alternative source of capex financing.
The Supreme Court last week rejected a plea by mobile carriers such as Bharti Airtel and Vodafone Idea Ltd for extension in the payment schedule and asked them to deposit an estimated Rs 1.47 lakh crore. Some telcos are already struggling with mounting losses and debt and the additional liability has raised concerns of them defaulting on existing loans.
The core thrust of this Budget was to improve the ease of doing business.
FPIs have been net buyers in the Indian markets since September 2019, the data showed.
The RBI governor said there is no reason to doubt that the fiscal deficit for the next year would be met.
BharatPe said one reason for the latest fundraising was to invest around $70 million in equity capital in its NBFC arm Resilient Capital, and leverage that by 3-4 times to raise a pool of around $300 million to service loans for merchants on its platform.
Only few sectors are likely to see some disruptions but alternatives are being explored, the RBI governor said.
RBI will auction funds worth Rs 1 lakh crore via long-term repos at a fixed rate of 5.15%.
"The monetary policy framework is in operation for the last three years. We are reviewing and analysing it internally as to how the MPC framework has worked. At an appropriate time, if required, we'll have discussion with the government," said the RBI governor at a media conference after he met the Finance Minister on the customary Budget briefing.
Nifty could soon test the 200-day simple moving average of 11,682.8, with the major support of 12,000 being breached Monday on FII selling across cash and derivatives markets.
The RBI Governor said inflation was broadly in line with their expectations.
Reserve Bank Governor Shaktikanta Das on Saturday said transmission of rate cuts is expected to improve further in the coming days and that momentum is gathering pace on credit growth. Earlier this month, the central bank opted for a status quo on the benchmark interest rate, amid signs of hardening inflation and an uncertain global environment.Transmission of rate cuts to improve further: RBI Guv Shaktikanta Das
While Finance Minister Nirmala Sitharaman's Budget for 2020-21 and recent steps have created a facilitating eco-system for reviving demand and consumption through a push on infrastructure projects, it is necessary to undertake land and labour reforms, bring efficiencies in agri marketing and focus on skill development, the RBI governor said.
In a bid to address the liquidity issue, the government has taken some steps through the "partial guarantee scheme" for interim funding.
Dheeraj Wadhawan, one of the directors and promoter of DHFL has approached the tribunal with the arguments that they be allowed to be part of the CoC meetings as the former board member of the company. The troubled home financier has been in a liquidity crisis for over a year. The RBI superseded its board on November 20 and placed it under an administrator.
MD & CEO Udaya Kumar says their microloans have grown at about 48-49% in the last four-five years on a CAGR basis, though going forward, the growth percentage could be slightly lesser. Excerpts:
Govt appears to be relying on the RBI to meet payment obligations in the event of cash-flow mismatches.
Data showed retail inflation surged to 7.6 per cent last month from a year earlier.
Foreign currency assets rose by $2.763 bn to $441.949 bn in the reporting week.
The first such exemption will begin in the fortnight ending February 14.
The Central Board of Directors of the RBI at its 582nd meeting reviewed the current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank. The board recommended aligning the financial year of RBI, currently July-June, with the government's fiscal year (April-March) from the year 2020-21. It approved forwarding a proposal to the government for its consideration, the RBI said in the statement.
Das ruled out any possible spike in inflation due to the proposals as the govt was maintaining "fiscal prudence".
Addressing the media after the customary post-budget meeting between the Finance Minister and the RBI, Governor Shaktikanta Das talked about the improving transmission of the rate cuts they had announced last year, the AGR ruling by the Supreme Court and growth projections.
The excess supply of funds has pulled rates on 4-year & 3-year sovereign bonds down 28-37 bps.
We expect the spread of sovereign curve over repo to compress even more as we go along.
The NUE should also maintain a minimum net-worth of Rs 300 crore always.
Gems and jewellery houses on Tuesday reached out to ministries of commerce and finance as well as the central bank, asking for leeway and time for credit facilities availed by exporters of polished diamonds and importers of rough stones.
In the previous week, the foreign exchange reserve had increased by $1.701 billion to $473 billion.
The deciding factors for a project getting sanctioned in a particular state are the location of a project are accessibility of raw materials, availability of skilled labour, adequate infrastructure, market size, and growth prospects, the RBI study notes implying the states having an edge over the rest in terms of their attractiveness as an investment destination.
Outstanding loans rose 989.26 billion rupees ($13.86 billion) to 101.03 trillion rupees in the fortnight to Jan. 31. Non-food credit rose 1.02 trillion rupees to 100.24 trillion rupees, while food credit fell 32.02 billion rupees to 788.99 billion rupees.
The Mexican peso has taken the top slot, gaining 1.2 per cent against the greenback.
RBI has considered feedback from a dedicated working group on liquidity management.
The move follows a petition from some industry representatives to finance minister Nirmala Sitharaman to not just relax the norms but also ensure access to funds to tide over payment issues that may arise due to problems in accessing inputs and critical raw material.
On Thursday, RBI introduced LTROs as one more tool after the “Operation Twist”.
Aaditya described Uddhav Thackeray's first visit to the national capital after becoming chief minister in November last year, as "smooth" and "cordial". Aaditya, who also holds Protocol department, said the meeting with Congress president Sonia Gandhi was a "political one."
Some market participants peg this a little higher as variable reverse repos offer a few basis points extra.
After the budget, the next trigger for the bond market is the monetary policy review, due today, on 6th February.
What matters more when deciding rates — growth-inflation dynamics or govt finances? As of now, it's a blur.
Food inflation may subside in the coming months, but core inflation is a cause for concern.
RBI kept the policy rates unchanged in the bi-monthly MPC meet today. Debt mutual fund managers say the move is in line with the market expectations.
The central bank raised its inflation projection, saying that outlook on prices remains uncertain. The Monetary Policy Committee (MPC) maintained the accommodative stance.
RBI will likely keep its policy stance accommodative, indicating it may ease later this year.
The Monetary Policy Committee (MPC) of the RBI, which is meeting for the first time this year post Budget, is likely to maintain status quo in rates. Even as there are expectations of a moderation in inflation from the elevated level of 7.35% in December 2019, the MPC is likely to maintain the policy repo rate at 5.15% in the upcoming monetary policy meeting to be announced on February 6.RBI monetary policy: Factors to watch out for
RBI will have the right to supersede the management of a cooperative bank in case of governance failure.
Sources close to PhonePe added it is not considering stopping its ATM service, which was highlighted as “revolutionary” by Walmart’s international CEO and president Judith McKenna.
"Regulatory oversight of the RBI has also brought greater stability of banking operations," the president said in his address at the golden jubilee celebration of the National Institute of Bank Management (NIBM) here.
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,495.25 crore on Friday, data available with NSE suggested.
The bank holds 64.40 per cent in the unlisted housing finance company, while the remaining stake is held by Housing & Urban Development Corporation (HUDCO), Unit Trust of India (UTI) and National Housing Bank (NHB). The bank is facing operational curbs under the Reserve Bank's (RBI) prompt corrective action (PCA) framework.
Last year, the government announced consolidation of ten PSBs into four mega state-owned lenders.
The pro-rata allotment set by the RBI was at 12.86 per cent.
The Reserve Bank of India on Thursday said it would conduct long-term repo operations, whereby it would inject money into the banking system at the policy repurchase rate for one and three years.
Loss making IDBI Bank has been picked as the first public sector lender in which the government will divest its stake, finance minister Nirmala Sitharaman announced in her budget speech last week.
In late August finance minister Nirmala Sitharaman announced the amalgamation of 10 public sector banks into four big banks. As part of this plan PNB is supposed to acquire OBC and UBI which would create the country’s second largest bank – both in terms of business and branch network.
Going ahead, planned or envisaged capex from all sources based on the pipeline projects sanctioned in all preceding years point to a noticeable improvement in 2019-20. The investment cycle appears to be poised to gain momentum in the short to medium term, but its sustainability needs to be watched closely, RBI said.
“There could be a downside risk for want of a data. Once the data comes in, and once we figure out that the value chains are getting impacted, we will revise our call. One should also realise that there are lot of industries which could possibly try to spin the story around in a positive manner,” Prasanna said.
The current situation index fell to 83.7 in January, the lowest since March 2015, according to RBI.
The market called the long-term repo proposal of Rs 1 lakh crore a “masterstroke".
Even though the cost of borrowing from the central bank did not change, bond investors cheered by pushing down yields, especially at the shorter end of the tenor.
The Reserve Bank of India (RBI) in December had kept interest rates unchanged after five consecutive cuts.
"The Reserve Bank of India's (RBI) announcement of forbearance towards stressed sectors signifies a gradual shift away from the regulator's earlier effort to enhance the quality and transparency of asset classification in Indian banking system," Fitch Ratings said. Last week the RBI allowed restructuring of the borrower account of MSME by one more year till March 31, 2021.
The domestic unit had settled at 71.25 against the American currency on Wednesday.
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