The Indian economy may grow 0.40 percentage points lower at 5.4-5.6 per cent during 2013-14 compared to the earlier forecast, ratings agency Icra said. The agency revised down the economic growth estimate citing weak economic environment and rupee
Tag: ratings
Post
Post
RBI to increase forex reserves by buying dollar
Data released by Reserve Bank of India (RBI) shows the central bank bought $820 million dollar more than it sold in March, the first net purchase since 2010. This shows that RBI wants to increase its forex reserves by taking advantage of the rise in foreign fund flows in the equity and debt market in the country. A report by Bank of America Merrill Lynch estimates that the central bank has bought $1 billion since March and may buy an additional $8 billion through March
Post
RBI may switch to CPI to index proposed IIBs
In a conference call with market participants, officials of Reserve Bank of India (RBI) clarified several issues on the proposed auction of Inflation Indexed Bonds (IIBs), which is scheduled on June 4. One of the remarkable information that the officials shares is that the central bank may use Consumer Price Index (CPI) as a benchmark for these bonds once the CPI stabilises
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
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 to issue clarification on bank licenses
Sources from the Reserve Bank of India (RBI) informed that some entities raised queries on the guidelines for new bank licences and the central bank would issue clarification on this by the early part of May. It may be recalled that in February 2013, the central bank released guidelines for new bank licences and a
Post
Financial crisis breaks consensus on 3 issues
Reserve Bank of India (RBI) Governor D Subbarao said pre-crisis consensus is broken on three macroeconomic issues - capital account convertibility, central bank intervention in exchange rate market and
capital controls. He said this while speaking at the IMF conference on Rethinking Macro Policy II in Washington
Post
Banks increase presence in rural areas
Data from Reserve Bank of India (RBI) shows that as of December 2012 211,000 villages in the country have bank connectivity compared to about 67,000 villages in March 2010. It may be noted that there are about 600,000 villages in the country. Bank connectivity is said to have risen mainly through business correspondents (BCs) and other
Post
IDFs set to get funds from EPFO
Following the approval of new norms by the board of the Employees' Provident Fund Organisation, the pension fund may invest part of its Rs 5 trillion corpus in infrastructure debt funds (IDFs). The new norms allow the pension fund body to invest in bonds with tenures up to 25 years and this may enable it to consider IDF
Post
Bank credit grows slower in January
Data from the Reserve Bank of India (RBI) shows that bank credit to industry expanded at a slower pace of 15.2 percent in January compared to 20.2 percent in the year-ago month. Credit to the services sector increased 12 percent in January compared to 15.1 percent in the year-ago month. The RBI data shows that non-food credit expanded 14.6 percent in January, slower than 15.9 percent a year ago.