Some analysts feel that the recent moves by Reserve Bank of India (RBI) to arrest rupee depreciation may not be effective. It may be recalled that the central bank further tightened rupee liquidity by restricting the borrowing of banks under the daily liquidity adjustment facility (LAF)
to 0.
Category: Infrastructure Finance
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RBI steps may not rein in rupee weakness: economists
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Kalyani Forge mulls Rs 2 bn investment to upgrade unit
In the coming five years, Pune-based Kalyani Forge
would deploy around Rs 200 crore on upgrading its current facility and key areas of operations. The Pune-based maker of precision forgings would use part of the investment for low-cost automation to increase productivity. It is learnt that the firm has a lot of u
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EPL to raise Rs 5 bn via bonds
Ennore Port (EPL) plans to raise only Rs 500 crore through tax-free bonds instead of the earlier plan of mopping up Rs 1,000 crore. This information was given by MA Bhaskarachar, Chairman and Managing Director of the country's first corporate port set up by the Government of India. The port originally planned to raise Rs 1,000 crore through tax-
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Centre allots Rs 1,300 cr to Post Bank of India
For the proposed Post Bank of India, the Union government has decided to sanction Rs 1,300 crore to meet its capital requirements. Although Post Bank does not intend to open a bank branch in each post office, the plan is to use postmen to meet the financial inclusion goal. According to the plan, Post Bank will have 50 branches in the first year, which will be increased to 150 by the fifth year. The branches will be located in select Head Post Offices in Tier-1-4 centres and select Sub-Post Offic
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Everstone to invest $34 mn in Hinduja Leyland Finance
Everstone Group, a private equity firm focused on India and Southeast Asia, has agreed to invest Rs 200 crore ($33.54 million) for a significant minority stake in commercial vehicle financing firm Hinduja Leyland Finance, the companies said on July 22. The Chennai-based non-banking finance company is owned by the Hinduja Group, which runs India's second-biggest bus and truck maker Ashok Leyland.
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3,000 private finance firms come under RBI scanner
About 3,000 private finance companies carrying out non-banking finance operations without requisite registration have come under the scrutiny of the Reserve Bank of India (RBI). RBI has started the scrutiny of the firms in the wake of concerns about their actual business activities. RBI's move comes against the backdrop of the government efforts to crackdown on entities, that are illegally raising large amounts of money from the public.
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RBI turns cautious on monetary tightening
The Reserve Bank of India has turned cautious after some liquidity-tightening measures aimed at increasing borrowing costs. Market experts said the central bank did not want interest rate to rise sharply as that could create more problems for the economy. RBI on July 18 rejected bids that quoted higher yields for its Rs 12,000-crore bond sale programme, netting a paltry Rs 2,532 crore.
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Industry bodies welcome FDI relaxation in key sectors
Industry bodies like Assocham and Confederation of Indian Industry (CII) welcomed the government's move to attract more foreign direct investment (FDI) in certain sectors. The government recently allowed 100 per cent FDI in telecom, hiked FDI limit in insurance sector to 49 per cent and took steps to promote foreign capital inflow in defen
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Banks may not raise rates despite RBI move
Even as some analysts are reading the recent steps by the Reserve Bank of India (RBI) to stem depreciation of rupee as monetary tightening, several banks are thinking otherwise. In order to curb speculative position in foreign exchange market and also to promote investment in rupee debt instruments, RBI hiked the rate on borrowing from marg
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RBI opens repo window with Rs 25k cr for mutual funds
The Reserve Bank of India on July 17 created a special Rs 25,000-crore borrowing facility for mutual funds (MFs) to meet their liquidity requirements. This is being done to manage the heavy redemptions that are expected due to sudden losses in debt funds following the tightening of liquidity and the hike in overnight lending rates. This is the second time the central bank has opened such a window for MFs.