Owing to high interest rate and slowdown in the economy, non performing assets (NPAs) with the public sector banks (PSBs) rose about 90 basis points year-on-year during 2012-13. However, their peers in the private sector managed to avoid rise in NPAs because of better risk management and low exposure to risky
Tag: inflation
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Members of RBI panel did not favour repo rate cut
Four members of the Technical Advisory Committee on Monetary Policy set up by the Reserve Bank of India (RBI) were not in favour of the central bank cutting repo rate in the May 3 Annual Policy meeting. On May 3, the central bank reduced the repo rate (the interest rate at which banks borrow short-term funds from the central bank) from 7.50 per cent to 7.25 per c
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Minister hints at more reforms in coming months
Expressing hope of a turnaround in the economy, Finance Minister P Chidambaram hinted that the government would unleash more reforms in the second half of the year. He said this while interacting with media persons on the sidelines of the performance report release function on the fourth anniversary of UPA-II
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RBI head asks states to focus on fiscal consolidation
Addressing a gathering of state finance secretaries Reserve Bank of India (RBI) Governor D Subbarao asked states to focus on the quality of fiscal consolidation and also on expenditure compression. He called for the need to explore ways for better cash management and adequate dissemination of information on state finances. Considering the rise in market borrowing of states, inflation risks and banks' excess investments in statutory liquidity ratio (SLR) securities, he said managing state gove
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RBI may reduce repo rate in June 17 policy review
Market analysts and economists expect Reserve Bank of India (RBI) to reduce policy repo rate in its mid-quarter policy review on June 17 considering the fall in inflation and sluggish economic growth. Earlier, RBI said it would take into account falling inflation while deciding on policy initiative in its review next month
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RBI may reduce repo rate in June 17 policy review
Market analysts and economists expect Reserve Bank of India (RBI) to reduce policy repo rate in its mid-quarter policy review on June 17 considering the fall in inflation and sluggish economic growth. Earlier, RBI said it would take into account falling inflation while deciding on policy initiative in its review next month
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OMCs to benefit from diesel price hike: Moody’s
Moody's Investors Service pointed out that the recent Re 1 a litre hike in diesel price would reduce under-recoveries incurred by state-run oil marketing companies (OMCs) on sale of fuel at below-market rates. With this price hike, diesel prices rose a cumulative Rs 2.25 per litre since January, which translates into an Rs 18,000 crore decline in under-recoveries, the rese
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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 banksĆā 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
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State-run OMCs witness decline in under-recovery
State-run oil marketing companies (OMCs) witnessed a sharp fall in the under-recovery on sale of diesel in the first fortnight of May to Rs 3.80 per litre from Rs 6.42 per litre during the second fortnight of April. Similarly, these companies witnessed decline in under-recoveries on account of kerosene for public distribution system (PDS) for the month of May 2013 to Rs 27.93 per litre
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Global investors expect rupee to strengthen
Some international investors feel that the Indian rupee may appreciate against dollar in the coming months helped by the fall in domestic inflation and possible improvement in the current account deficit. Investment analysts expect current account deficit to improve on the back of benign commodity prices in the in