In its Annual Report 2012-13, Reserve Bank of India (RBI) said the economic growth may recover later in 2013-14 if government delivers better administration, eases supply constraints and maintain stability. Economic growth in the country slipped to a decade-low level of 5 percent in 2012-13 and this year the RBI expects growth to be
Tag: CRR
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RBI, govt must introduce more steps to meet deficit
Analysts opine that the government and the Reserve Bank of India (RBI) may require more effective measures to fight the current account deficit or balance of payments and fiscal problems. Though outward foreign investments have increased over the past few years, RBI's curbs will not mean much in actu
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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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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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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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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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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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BofA-ML expects no rate cut from RBI until rupee stabilises
In its recent report, Bank of America Merrill Lynch (BofA-ML) opined that the Reserve Bank of India (RBI) may not reduce policy repo rate until the volatility in the currency market subsides. According to the brokerage, the central bank may prefer to reduce Cash Reserve Ratio (CRR) by 25 basis points on July 30 instead of cutting policy rates if the Indian currency remains