According to analysts in India Ratings, Tata Steel's investment in its European unit has not delivered returns according to the management's expectation. This prompted the firm to writedown $1.6 billion asset in its European unit, Rakesh Valecha, Senior Director at India Ratings feels. Tata Steel attributed the writedown to "weak economic and market conditions" in Europe and it expects this situation to continue "over the near- and medi
Tag: economy
Post
Post
Survey highlights need to boost funding for MSMEs
Government must take steps to promote flow of funding to Micro, Small and Medium Enterprises (MSMEs) in order to ensure growth in the sector. According to a Ficci-Grant Thornton survey, inadequate credit facility is one of the factors that thwart the expansion plant of majority of companies in the sector
Post
Transmission of RBI policy signals is asymmetrical
A research paper from Reserve Bank of India (RBI) shows that transmission of monetary policy signals to financial markets in India is asymmetrical. It is asymmetrical because the transmission is faster and persistent when the monetary system is in deficit mode, than when it is in expansionary phase, the paper argu
Post
RBI head to tap all options to ease liquidity strain
Reserve Bank of India (RBI) Governor D Subbarao assured that the central bank would explore all the options available with it to ease liquidity strain in the banking system, including adjusting banksÂ’ cash reserve ratio (CRR) or any other mechanism. He informed, during a post-policy conference call with analysts, that the central bank will not just limit itself to bond
Post
IMF deputy head expects 5.8 per cent economic growth
In 2013-14, the Indian economy may expand 5.8 per cent and in 2014-15 it may grow 6.3 per cent, Naoyuki Shinohara, Deputy Managing Director of the IMF said. This compares to an average growth rate of 8.7 per cent for the five years prior to the global financial crisis, he said
Post
IMF deputy head expects 5.8% economic growth
In 2013-14, the Indian economy may expand 5.8 per cent and in 2014-15 it may grow 6.3 per cent, Naoyuki Shinohara, Deputy Managing Director of the IMF said. This compares to an average growth rate of 8.7 per cent for the five years prior to the global financial crisis, he said
Post
Crude oil futures rise in recent sessions
Crude oil futures rose in recent trading sessions in the international market led by optimistic unemployment data from the US. According to data released by the US Labor Department, unemployment in the country declined to 7.5 percent in April 2012 from 7.6 percent in the previous month. This is said to be the lowest unem
Post
Ahluwalia urges pvt sector to invest $500 bn in infra projects
With the government consolidating its fiscal position, Planning Commission Deputy Chairman Montek Singh Ahluwalia urged private sector to contribute no less than 50 per cent of the estimated investment in infrastructure in the 12th five year plan (2012-17). It may be noted that the government estimated $1 trillion investment in infrastructure during this period. Ahluwalia said there are zero prospects of the gove
Post
Banks bet big on retail credit
With credit flow to corporate sector remaining weak, banks are betting big on advances to the retail sector. Banks expect that advances to retail customers would support credit growth in 2013-14 like the previous year. That is because demand for credit from the corporate sector is weak. Although some banks are confident that credit flow to corporate sector would improve eventually, for the time
Post
RBI has not received any application for banking license
Union Minister of State for Finance Namo Narain Meena informed Rajya Sabha that as on date no application for licence under the new banking guidelines was received and no licence has been granted under these new guidelines. On February 22, the central bank released ‘Guidelines for Licensing of New Banks in Private Sector’ to promote financial inclusion and further infuse comp