Indiabulls Housing Finance may mop up 40 per cent of the Rs 10,500 crore capital that it plans to raise in 2013-14, through banks, agency report indicates. The company would issue bonds to raise another 40 percent of the amount, while the portfolio sell down or securitisation will account to 20 per
Tag: liquidity
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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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RBI steps may hit home sales, cement, steel volume growth
In a research note, rating agency CRISIL said new home sales may decline 400 basis points (bps) and volume growth for steel and cement may shrink about 100 bps owing to the liquidity tightening measures of the Reserve Bank of India (RBI). In order to stabilise rupee exchange rate against dollar, RBI raised short-term interest rates and restricted amount that bank
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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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Economic growth may take a hit from RBI steps; experts
Several brokerages and economists expect the Indian economy to grow at a lower pace in 2013-14 than what was anticipated earlier because of the recent measures by Reserve Bank of India (RBI) to combat depreciation of rupee. Economists and brokerages feel that RBI's recent measures to control rupee weakness may impede growth
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RBI tightens trading norms to curb volatility in currency mkt
In a bid to curb volatility in the currency market, Reserve Bank of India (RBI) prohibited banks from taking proprietary position in the currency futures and exchange-traded currency options market. This effectively restricts them to transact only on behalf of clients. Banks carry out currency trading on behalf of their clients while they have a separate desk to trade in the foreign exchange market of their own. The latter is
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Rates on CDs remain above 8%
Owing to the outflow of corporate advance tax from the banking system, rates on the Certificates of Deposit (CDs) are ruling high above 8 percent, media reports indicate. The first instalment of corporate advance tax is due on June 15. Advance tax outflow has strained liquidity in the banking system with banks borrowing about Rs 85,000 crore on an average under RBIÂ’s liquidity adjustment facilit
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RBI refrains from reducing policy rate, keeps CRR unchanged
A resolute Reserve Bank of India (RBI) refrained from reducing policy repo rate in its mid-quarter review of monetary policy on June 17, 2013 citing the persistently high food inflation even though general inflation has declined. Thus, the policy repo rate under the liquidity adjustment facility (LAF) remains unchanged at 7.25 per cent and the reverse repo rate remains at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.25 per cent. The central bank also kept
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RBI to continue purchase of govt bonds
Reserve Bank of India (RBI) continues to purchase government bonds through the open market operation (OMO) in order to ease liquidity constraint in the banking system. This was hinted by Economic Affairs Secretary Arvind Mayaram when he said the government doesn't think the central bank has slowed the pace of its bond purchase programme
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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