For the accounting year July-June 2012-13, the Board of Reserve Bank of India agreed to provide Rs 33,010 crore as dividend or surplus profit to the government. Market participants expected a dividend payout of Rs 33,000-35,000 crore. The RBI follows a July to June accounting year. In the previous year, it paid a dividend of Rs 1
Tag: bank
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State-run banks asked to do due diligence themselves
State-run banks have been asked to conduct due diligence of their own on the company or projects it intends to lend instead of the existing practice of relying on lead banks. Union finance ministry asked state-run banks that sanctions loan to sign on the dotted line only when they are satisfied with the appraisal.
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HDFC Bank hikes base rate by 0.2%
With effect from August 3, India's leading private sector lender HDFC Bank raised the base lending rate to 9.80 per cent from 9.60 per cent. The bank has reportedly raised interest rate on the back of RBI measures to contain volatility in rupee exchange rate and increase in short term deposit
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Banks request regulatory forbearance from RBI
Reserve Bank of India (RBI) received request from some banks to give concessions on the prudential guidelines owing to unfavourable liquidity condition in the banking system. One of the concessions sought by banks is the waiver of the additional 75 basis points provisioning on restr
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RBI keeps policy rates unchanged due to rupee weakness
Despite the slowdown in the economy and decline in wholesale price index (WPI)-based inflation, Reserve Bank of India (RBI) refrained from reducing policy repo rate in its first quarter review of monetary policy on July 30. The central bank kept key policy rate unchanged at 7.25 per cent and the Cash Reserve Ratio (CRR) at 4 per cen
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RBI steps help stabilise rupee exchange rate
The recent measures taken by Reserve Bank of India (RBI) has some effect on stabilising rupee exchange rate against dollar. The central bank took some measures in order to make the domestic currency much costlier. In recent trading session, rupee-dollar exchange rate is hovering in a 58.80 to 59.20 range. Some sources hinted that foreign banks were seen selling the doll
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Analysts comment on RBI’s CRR measure
Some market analysts feel that the recent step by Reserve Bank of India to hike daily average CRR requirement of banks is akin to a CRR hike. It may be recalled that recently the central bank mandated banks to maintain higher average CRR (cash reserve ratio) of 99 per cent of the requirement on daily basis as against the earlier 70 per cent. CRR is portion of de
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Indian economy may grow slower than expected
Some rating agencies and brokerages reduced the economic growth forecast for 2013-14 owing to the liquidity tightening steps taken by Reserve Bank of India (RBI). For instance, rating agency ICRA lowered its growth forecast to the range of 5.4-5.6 percent from 5.8-6 percent
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Cost of funds for realty firms may rise
Reserve Bank of India's recent measures to contain depreciation of rupee against dollar may raise cost of borrowing for developers and affect their ability to service debt, industry players feel. It may be recalled that the central bank limited the daily borrowing of banks under its liquidity adjustment window
to 0.5 per cent of their net deposits against 1 per cent earli
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Basel-III norms may require Rs 2.3 trillion additional capital for SBI
In order to meet the additional capital requirement under the Basel-III norms, State Bank of India (SBI) would need about Rs 230,000 crore up to 2018. This includes Rs 150,000 crore of tier-I capital and Rs 80,000 crore of tier-II capital, agency reports indicate.
It is learnt that SBI may raise some of the required capital through internal accruals and some part from the mark