Easing inflation kindles February rate cut hopes
The Indian economy is showing recovery signs in Q3 FY 2024-25 with an expected growth of 6.7% in the next fiscal year and inflation averaging 3.8%. This provides room for possible rate cuts by the RBI, driven by strong festival activity, rural demand, and improved employment. Sops announced by states may divert resources away from infra development: RBI article
Several states announced sops in their 2024-25 Budgets, risking diversion of resources from critical infrastructure. Centre and states achieved fiscal moderation in H1:2024-25 due to robust receipts. Higher tax collections and large surplus transfers boosted non-tax revenues. Government spending expected to pick up pace in H2:2024-25. Centre aims for a fiscal deficit target of 4.9 per cent of GDP. ETMarkets Smart Talk: Sectors to avoid in 2025: Overvalued plays and low growth visibility stocks
The market has digested the continuing geo-political concerns and with the new US president taking an anti-war stance, there are high chances that various regional wars shall eventually stabilise in the near future. IndusInd Bank shares in focus after RBI slaps fine on lender
The Reserve Bank of India fined IndusInd Bank for violating deposit interest rate rules. The bank faced a regulatory inspection. IndusInd Bank's shares have dropped 42% this year. The bank's recent quarter saw profit decline. Analysts predict improvement in coming quarters. Anand Rathi forecasts growth and sets a target price of Rs 1,496. View: Monetary policy is best crafted with analytical clarity, not muscular nationalism or simple binaries
India's central bank faces the complex challenge of managing its currency amidst a structural current account deficit. A nuanced approach is needed, moving beyond simplistic notions of a "strong" rupee and textbook free-market principles. Analytical frameworks, predictable depreciation, and calibrated capital controls are crucial for navigating this intricate economic landscape. RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm
Shaktikanta Das concluded his six-year term as RBI governor, prioritizing inflation control over rate cuts. His successor, Sanjay Malhotra, faces pressure to stimulate growth amid slowing GDP and dissent within the rate-setting panel. Malhotra's stance on rate cuts remains uncertain, particularly given the US Fed's actions and their impact on the rupee. Delhi, Punjab, Kerala & Puducherry spend more on day-to-day expenses rather than investing in capex: RBI report
The Reserve Bank of India (RBI) warns that populist measures like free electricity and transport, while offering immediate relief, are straining state finances. These schemes hinder investment in crucial infrastructure, impacting long-term economic stability. High debt levels and growing subsidy burdens exacerbate the problem, with some states spending ten times more on operational costs than development, limiting future growth potential. TReDS bill financing crosses Rs 2-lakh crore mark
TReDS is an initiative introduced by the RBI and backed by the MSME Ministry. It serves as an electronic platform facilitating the financing and discounting of trade receivables of MSMEs through multiple financiers in order to solve their working capital-related challenges. Weather, rise in international agricultural commodity prices pose upside risks to food inflation, warns RBI in MPC Minutes
The Reserve Bank of India (RBI) maintained its repo rate at 6.50% while acknowledging softening food inflation. However, the MPC minutes cautioned about upside risks from weather and global commodity prices. The RBI emphasized its commitment to controlling inflation amidst global economic stability but with persistent geopolitical uncertainties. RBI board reviews global, domestic economic situation
The Reserve Bank of India's central board, led by new Governor Sanjay Malhotra, convened to assess the global and domestic economic landscape. The board acknowledged Shaktikanta Das's contributions during his six-year tenure as governor. Discussions encompassed economic outlooks and the progress of banking in India. Commerce ministry may face possible repeat of 2011 trade data error
India's November 2024 gold import figures, showing a record high of $14.86 billion and a quadrupled increase, are under scrutiny by the commerce ministry due to a potential discrepancy. This surge contributed to a record trade deficit, prompting investigations into possible data errors similar to a 2011 incident. Experts are divided, with some suspecting miscalculations while others find double-counting improbable. How is the economy really doing? India’s 63 million small businesses may have the answer
India's second-quarter GDP figures came as a surprise to many. However, this confirms the concerns of many small businesses who have been reporting slowing growth and increasing difficulties for months. Fintechs seek RBI nod for credit line on UPI platform
Digital lending NBFCs have requested the Reserve Bank of India to allow them to offer pre-approved credit lines on the UPI platform. They argue this will broaden access to low-cost, short-term credit, particularly for those new to credit, aligning with the RBI's objectives. The RBI recently granted this permission to small finance banks. Mobikwik's public market debut; taxing times for e-gaming
One Mobikwik Systems made a strong debut on the bourses on Wednesday. This and more in today’s ETtech Top 5. Indian economy to grow 6.6 pc in FY26: Ind-Ra
India Ratings and Research (Ind-Ra) projects 6.6% GDP growth for India in FY26, driven by investments, rebounding from a cyclical slowdown. Monetary easing is expected, but fiscal and external tightening will persist. Inflation is projected at 4.4%, with a merchandise trade deficit of $308 billion anticipated. Fed, Budget and Earnings to be key levers for India's economic momentum: Ajay Bagga
?So, you throw down your cards and you wait for the opponent to show their cards and then he makes a different play after that. So, it is a wait and watch. Markets have priced in one level of Trump moves post Jan 20th but let us see what actually comes, that could surprise, so that is one. As far as the Fed goes, a rate cut tomorrow and then a pause probably. RBI lifts restrictions on two Edelweiss Group cos
The Reserve Bank of India (RBI) lifted business restrictions on Edelweiss Group's NBFCs, ECL Finance and Edelweiss ARC. The RBI had imposed these restrictions in May due to alleged "evergreening of stressed assets" involving structured transactions and connected AIFs. The RBI expressed satisfaction with the remedial measures taken by both companies to address the concerns. The 'December' effect on Indian stock market & why it matters
The "December Effect" refers to the tendency of the Indian stock market to perform well in December. This is driven by portfolio rebalancing, festive spending, FII inflows, and economic recovery cycles. However, it's important to remember that past performance is not indicative of future results. Supreme Industries positioned for growth amidst raw material price volatility: Chakri Lokapriya
When the companies start putting earnings, we are likely to see a lots of downgrades of earnings So, against that backdrop bank loan growth has to pick up. ETMarkets Smart Talk: Gold and Silver in 2025: Investment insights from Deepak Ramaraju
Markets have witnessed several challenges in the recent past - Russia Ukraine war, the escalation of Israel Palestine conflict, the invasion of Syria etc. However, these geo-political conflicts affect the commodity supply chain, currency movement and inflation. What are repo rate & reverse repo rate?
If you are confused by personal finance terms, jargon and calculations, here’s a series to simplify and deconstruct these for you. In the 29th part of this series, Riju Mehta explains the meaning of repo rate and how it differs from reverse repo rate. Indian state banks achieve Rs 1.41 lakh crore net profit; GNPA drops to 3.12 per cent in FY24
Indian Public Sector Banks (PSBs) achieved a record net profit of Rs 1.41 lakh crore in FY24, with GNPA declining to 3.12% by September 2024. The first half of FY25 saw continued growth with a net profit of Rs 85,5206,000 crore. This success is attributed to improved asset quality, operational efficiency, and government support, including schemes promoting financial inclusion. RBI raises collateral-free agricultural loan limit to Rs 2 lakh to aid farmers
The Reserve Bank of India (RBI) has raised the collateral-free loan limit for farmers from Rs 1.6 lakh to Rs 2 lakh, effective January 1, 2025, to help small and marginal farmers manage rising input costs. The new policy waives collateral and margin requirements for loans up to Rs 2 lakh, benefiting over 86% of farmers. India's CPI inflation to ease to 4.7-4.8 pc in FY25, driven by lower food prices: Report
India's CPI inflation is projected to be around 4.7-4.8% for FY25, due to easing food inflation and stable global commodity prices. Favorable harvests and benign global food and energy prices contribute to this positive outlook. November 2024 CPI inflation moderated to 5.5%, with vegetable inflation dropping significantly. This trend may lead to a more accommodative monetary policy by the RBI. NRI Talk: India's promising sectors – Top 4 long-term investment opportunities for NRIs, Himanshu Kohli decodes
The principle for country diversification is just as important as it is for asset diversification. Though India’s growth story has indeed been compelling, relying exclusively on one market limits both risk-adjusted returns and true diversification. ISG gets RBI nod to operate as payment aggregator
In-Solutions Global (ISG), backed by JP-Morgan, has received full payment aggregator authorisation from the Reserve Bank of India. This allows ISG, which already processes over 28 billion transactions annually for over 70% of Indian banks, to broaden its digital payment services, enhancing financial inclusion through faster and more secure transactions. Retail inflation falls, industrial output expands
Manufacturing growth came in at 4.1%, with 18 of the 23 sectors recording expansion. The top three contributors were basic metals (3.5%), electrical equipment (33.1%) and coke and refined petroleum products (5.6%). Mining and electricity recorded growth of 0.9% and 2%, respectively. ET CEO Roundtable: An economy in slow motion needs a policy on fast forward
The big picture is of resilience, and India's on the right track, underpinned by financial and macroeconomic stability, said the elite panel of the ET CEO Roundtable, while not glossing over growth and job creation concerns. To unleash the animal spirits and help India realise its full potential, it needs policy catalysts, the panelists said in a discussion. RBI wary of Fintech companies' vehicle loan drive
RBI has expressed concerns over fintech companies' aggressive lending practices, particularly to first-time buyers of used vehicles. These practices, including excessive top-up loans, are increasing borrower vulnerability and impacting lender balance sheets. The regulator has warned against high loan-to-value ratios and has taken action against some lenders for non-compliance. Rupee slips to record low but central bank steps in to curb losses
The Indian rupee hit a new low against the US dollar. Demand from importers and the NDF market pushed the rupee down. The Reserve Bank of India intervened to curb further losses. Asian currencies traded mixed. The US dollar held steady after inflation data. The dollar-rupee forward premiums increased on rate cut expectations. F&O Radar| Deploy Long Iron Condor in Nifty for potential gains from range
Market experts predict Nifty will trade between 24,500 and 24,700. A breakout could trigger a 100-150 point swing. The current market trend is positive. Volatility is anticipated to increase. The recommended trading strategy is a Long Iron Condor. This strategy is suitable for range-bound markets. Traders should monitor the index closely. ETMarkets Smart Talk: Abhijit Bhave's 2025 Investment Picks: Quality over growth and value
Geopolitical uncertainty has historically caused short-term volatility in global markets, but fundamentals have prevailed in the long term. India, with its strong domestic growth drivers, remains a relatively resilient market with local factors having a larger influence. Beyond possible short-term pain, I see a positive medium & long-term positive trend in our stock markets View: India is sacrificing growth. It needs to stop.
India's economy is slowing down. Loans against gold are increasing. Job creation is low. Consumer credit fueled demand but not capacity. Manufacturing growth has dropped. Inflation remains high. Many urban workers returned to farming. The government is considering a new tax on clothes. A job internship program is delayed. The central bank lowered growth projections. Inflation, growth, and rupee stability will be focus areas for new RBI Governor: KV Kamath
Primarily, I would believe that that would continue going forward with whoever is the governor and with Governor Malhotra there, I think we are in very good hands because he brings several, I would say, set of experiences. RBI's 'impossible trinity' dilemma is waiting for incoming governor Sanjay Malhotra
Sanjay Malhotra takes charge as RBI governor amid economic headwinds. He faces the challenge of balancing growth, inflation, and a weakening rupee against a strong dollar. Policy decisions will be complicated by demands for lower interest rates and the need to manage exchange rate volatility. Quick commerce and fintech innovation to be key themes for India's growth story in 2025: Dinshaw Irani
December quarter does not look like a very exciting quarter. The numbers I am talking about. Again, if Feb rate cuts come in, there will be some uptick, but beyond that, again, on the demand front, do not see much of an upside there and obviously the biggest uncertainty is with the new president coming into the US and what kind of views he is going to take on his economy. New RBI Governor: 3 potential changes to track under Finance Ministry insider Sanjay Malhotra
As Sanjay Malhotra, a Finance Ministry insider, takes over as RBI Governor, market experts suggest that the government's preference for bureaucrats over technocrats at the central bank's helm signals a closer alignment with its policies. Nomura's Sonal Varma noted that while initial alignment with government thinking is expected, it may shift towards the RBI's institutional approach over time. Balancing inflation and pushing growth will be key priorities for new RBI Governor: Dinesh Kumar Khara
I think, yes, it is actually containing inflation and also pushing growth. Both are something which I am sure would be the focus for the new governor, that is my senses. Shaktikanta Das and his six years as RBI Guv: Steering RBI in times of despair and optimism
Das steered India's economy through challenging times, including the Covid pandemic and global conflicts. Das prioritised financial stability and a 4% inflation target, leaving India as the fastest-growing economy with robust foreign exchange reserves. His successor is Sanjay Malhotra. Enter, Peacetime General: New RBI guv comes in with enough room to build an institution and leave a legacy
RBI's new governor, Sanjay Malhotra, inherits a stable economy and a robust banking system. Unlike predecessors, he faces no immediate crises but must address high real interest rates, potential overregulation of banks and the global rise of cryptocurrency in the Trump era. Shaktikanta Das leaves too big shoes to fill for the successor
Sanjay Malhotra replaces Shaktikanta Das as the new Reserve Bank of India Governor. Das's colleagues commended his leadership. Das fostered collaboration and innovative solutions during his six-year tenure. He effectively managed diverse expectations, ensuring fiscal and monetary policy alignment. Malhotra's experience and communication skills are seen as assets in his new role. How is the RBI Governor appointed?
Sanjay Malhotra, a 1990-batch IAS officer, has been appointed as the 26th RBI Governor. He will succeed Shaktikanta Das on December 11, 2024, for a three-year term. Malhotra currently serves as Revenue Secretary and previously held the Financial Services Secretary position. The appointment comes as the RBI addresses inflation and economic slowdown. IITian at RBI's helm: What awaits Sanjay Malhotra at central bank
Sanjay Malhotra, a seasoned bureaucrat and current Revenue Secretary, has been chosen to succeed Shaktikanta Das as the 26th governor of Reserve Bank of India. Malhotra's appointment comes amid concerns about India's slowing economic growth, weakening currency, and persistent inflation. NRI Talk: FCNR(B) Deposits - Higher rates offer NRIs an attractive investment opportunity
While RBI has now permitted to offer upto 1.50% higher interest rates compared to current levels, the actual rates the banks will offer depends upon their ability to earn higher rates from loans. Need to go beyond 'band-aid' to address liquidity: Economists
The Reserve Bank of India (RBI) cut the cash reserve ratio (CRR) by 50 basis points to inject liquidity into the banking system. Economists predict this effect will be short-lived, requiring the RBI to utilize additional tools like open market operations and foreign exchange swaps. Cash still has demand in times of digital push
Cash demand in India fluctuated significantly in 2019, influenced by elections and festivals. It surged by approximately Rs 87,000 crore during the Lok Sabha elections, then declined, before rising again by Rs 85,000 crore around major festivals and state elections. Following these events, cash in circulation contracted. Aligning Indian auditing with global standards to boost investor confidence, attract more funds: NFRA chief
India's National Financial Reporting Authority (NFRA) chief advocates aligning auditing standards with global norms to boost investor confidence and attract funds. The NFRA is working to update standards, addressing gaps and aligning with international practices, despite some concerns from chartered accountants. This move aims to enhance financial data credibility and support India's growth ambitions. Key investment destination: FDI inflows in India cross $1 trillion
India attracted over a trillion dollars in foreign direct investment between April 2000 and September 2024. Mauritius, Singapore, and the US were the top investors. Key sectors included services, software, and telecommunications. Inflows surged after 2014, exceeding the previous decade's figures. Experts predict continued growth, driven by strong economic performance and government initiatives. Banks to use AI & machine learning to safeguard customers from financial frauds
In a significant move to address the growing menace of digital financial frauds, the Department of Financial Services (DFS) has directed banks to adopt advanced technologies, including artificial intelligence (AI) and machine learning (ML), to safeguard customers from fraudsters. Explainer: What are different types of SIPs available for mutual fund investors and who should use them
89 smallcap stocks offer double-digit weekly returns as market shrugged off GDP concerns
89 smallcap stocks offer double-digit weekly returns as market shrugged off GDP concernsAround 11 stocks, including Om Infra, AGI Greenpac, HEG, Borosil Renewables, Axiscades Tech, and Jindal Worldwide, have posted returns between 20-30% this week. In the midcap sector, nine stocks, such as IGL, PB Fintech, and UCO Bank Energy, have seen double-digit gains. IGL has increased by 17%, while PB Fintech and UCO Bank have risen by 13% and 12%, respectively. FCNR deposit rates raised till FY25 end to attract inflows
FCNR deposit rates raised till FY25 end to attract inflowsFor foreign currency non-resident (Banks) or FCNR (B) deposits with tenors ranging from one year to less than three years, the ceiling is overnight ARR for the respective currency/ swap plus 400 basis points. The ceiling is 500 basis points above the reference rate for deposits maturing three years and above. P2P sector sitting on Rs 1,163 crore of bad loans: RTI filing shows
India's forex reserves up by $1.51 bn at $658.09 bn as of November 29
India's forex reserves up by $1.51 bn at $658.09 bn as of November 29India's foreign exchange reserves saw a boost, reaching $658.09 billion by November 29, a $1.51 billion increase. This growth was primarily driven by a $2.06 billion surge in Foreign Currency Assets. However, gold reserves experienced a slight dip, decreasing by $595 million. Both Special Drawing Rights and the IMF reserve position saw modest increases. RBI's credit policy on expected lines, CRR cut to support growth: Experts
RBI's credit policy on expected lines, CRR cut to support growth: ExpertsThe RBI held steady its key interest rate. It cut the CRR to inject funds into the banking system. Experts welcomed the CRR reduction. They believe it will bolster growth. The RBI aims to balance inflation control with economic support. The move may ease liquidity stress. The central bank also took steps to attract more capital inflows. Market Wrap: D-Street breaks 5-day winning streak; Sensex slips over 50 pts, Nifty drops below 24,680
Why market corrections are often misunderstood
Why market corrections are often misunderstoodThe recent correction in the Indian market presents a potential buying opportunity for long-term investors. While the market has corrected 11%, India's strong fundamentals, sectoral bright spots, and improved valuations make it an attractive investment destination. Historically, corrections have led to strong returns in the long term. RBI cuts CRR by 50bps. 7 ways in which banks will benefit
RBI cuts CRR by 50bps. 7 ways in which banks will benefitThe Reserve Bank of India (RBI) lowered the cash reserve ratio (CRR) by 50 basis points in two phases, injecting ?1.16 lakh crore into the banking system. This move is expected to boost lending capacity and improve banks' profitability, although some analysts predict margin pressures and asset quality challenges may persist. RBI's MPC didn't cut rates this time around. But, there is more to this story...
RBI monetary policy: CRR cut a positive for bank, realty stocks but prolonged rate pause may pose headwinds, predict experts
RBI fires Rs 1.16 lakh crore lifeline for banks. What it means for stock market investors
RBI fires Rs 1.16 lakh crore lifeline for banks. What it means for stock market investorsRBI Governor Shaktikanta Das on Friday reduced the cash reserve ratio (CRR) to 4% in two phases, aiming to address liquidity deficits caused by rupee depreciation and capital outflows. While there was no rate cut, the CRR reduction sparked a 2% rally in bank stocks, particularly benefiting low-float PSU banks, as it boosts lending and supports net interest margins (NIMs). Robust kharif, rabi prospects augur well for private consumption: RBI Governor Das on demand weakness
50 bps CRR cut signals RBI’s commitment to address liquidity crunch: R Gandhi
RBI slashes CRR, GDP growth forecast as inflation vigil continues
RBI slashes CRR, GDP growth forecast as inflation vigil continuesThe Reserve Bank of India (RBI) maintained its policy interest rates but lowered the cash reserve ratio to inject liquidity into the banking system. It also lowered India's FY25 GDP growth projection to 6.6% and raised the inflation projection to 5.7%, acknowledging adverse growth-inflation dynamics. RBI has found A(I) way of handling frauds and mule accounts
RBI has found A(I) way of handling frauds and mule accountsRBI Governor Shaktikanta Das announced a new initiative to combat financial fraud. The central bank is piloting an AI model, MuleHunter, to detect mule accounts. This model helps identify accounts used by fraudsters. RBI encourages banks to collaborate on this initiative. The bank also conducts a hackathon on “Zero Financial Frauds”. RBI's Shaktikanta Das has a few suggestions for banks to further boost India's financial strength
RBI's Shaktikanta Das has a few suggestions for banks to further boost India's financial strengthRBI MPC: The Reserve Bank of India (RBI) Governor Shaktikanta Das announced measures to address unclaimed deposits by segregating beneficiary accounts through Direct Benefit Transfer (DBT). The RBI also increased interest rate ceilings on Foreign Currency Non-Resident Bank (FCNR(B)) deposits to attract capital inflows, effective until March 31, 2025. Indian banks' financial parameters remain strong, and the RBI continues proactive supervision. RBI provides relief to small farmers in latest MPC meet, collateral free agricultural loan limit increased to Rs 2 lakh
RBI’s MPC announces launch of podcasts as new communication channel
Sensex, Nifty recover to trade higher as RBI cuts CRR by 50 basis points
Sensex, Nifty recover to trade higher as RBI cuts CRR by 50 basis pointsIndian markets opened lower but rebounded on Friday, driven by banking stocks after the RBI cut the CRR by 50 basis points to 4%, leaving the repo rate unchanged at 6.5%. Foreign investors turned buyers, boosting sentiment. Asian markets slipped, while oil prices dipped. The rupee strengthened against the dollar. ETMarkets PMS Talk: Faster, Stronger, Cheaper: A winning framework for stock selection, explains Manoj Bahety
Canara Bank shares climb 2% after RBI nod to divest stake in Canara Robeco AMC, Canara HSBC Life Insurance via IPO
NHB frowns at delayed data filing to mask delinquencies
NHB frowns at delayed data filing to mask delinquenciesThis was being done to keep bad loan ratios under control and avoid adverse reporting to the regulator. HFCs would generally report key financial figures to the NHB by the 10th or 12th of each month, which the regulator is unhappy about. In the letter dated December 2, 2024, addressed to managing directors of all HFCs, the NHB raised the issue of non-submission of delinquent data as per the laid down procedures. ET has reviewed a copy of the letter. All eyes on RBI as liquidity may dry up amid lower FPI flows
All eyes on RBI as liquidity may dry up amid lower FPI flowsSeveral economists from institutions such as Standard Chartered Bank and ICICI Securities Primary Dealership have projected a cut in the cash reserve ratio (CRR). Some treasury heads also said that the central bank could undertake long-term repo operations or open market operations (OMO purchases) to infuse liquidity into the system. Is targeting core inflation the answer? RBI's repo rate dilemma sparks debate
Is targeting core inflation the answer? RBI's repo rate dilemma sparks debateThe RBI's decision to hold the repo rate steady despite low core inflation is debated. Headline inflation, driven by food prices, remains the target. However, revising the CPI basket and its weights, potentially reducing the emphasis on food, is considered. E-commerce's impact on pricing adds complexity to this recalibration. Canara Bank gets RBI nod to divest stake in Canara Robeco AMC, Canara HSBC Life Insurance via IPO
Bond yields fall 10 bps since GDP data. What is the market expecting?
Some ATMs to retract cash to tackle fake shutter overlay fraud: RBI
Some ATMs to retract cash to tackle fake shutter overlay fraud: RBIThe Reserve Bank of India is partially reactivating ATM cash retraction, a feature disabled in 2012 due to fraud. This move combats a new "fake shutter overlay" scam where criminals trap dispensed cash. The reinstated retraction aims to give customers a better chance of recovering their money from compromised machines, focusing on ATMs susceptible to this fraud. ETMarkets PMS Talk: Triggers for 2025 - Trump’s tax policies and India’s Union Budget 2025 take center stage
ETMarkets PMS Talk: Triggers for 2025 - Trump’s tax policies and India’s Union Budget 2025 take center stageIf you look at the last three quarters—Q4 of the last fiscal, Q1, and Q2 of this fiscal—we saw revenue growth of less than 5%. In Q4 and Q1, we observed some margin expansion, but in Q2, there was margin contraction. Earnings growth was around 5% for this quarter gone by, while valuations were upward of 22-23 times. In that sense, there was very little room for the market to move ahead, which is why we saw the correction at this point. Will Shaktikanta Das deal with grim truths starting December 11?
Will Shaktikanta Das deal with grim truths starting December 11?RBI Governor Shaktikanta Das faces uncertainty about his future as his six-year term ends amid economic challenges. A slowing economy, persistent inflation, and controversies surrounding inflation calculations have fueled speculation about potential successors. Markets anxiously await the outcome of the MPC meeting and news of Das's possible extension. Banks stick to certificates of deposits to keep lending
Banks stick to certificates of deposits to keep lendingData from domestic rating agency India Ratings show public sector banks issued ?37,700 crore of CDs in the first 20 days of November compared with Rs 42,800 crore during October 1-31. CD issuances by private banks in this period, meanwhile, rose to Rs 19,100 crore from Rs 16,900 crore in October. Auto sector faces short-term challenges, recovery likely by March: Sunil Subramaniam
Auto sector faces short-term challenges, recovery likely by March: Sunil Subramaniam?So, I am sure that market is a forward looking animal, so looking at Q2 GDP which is already a month-and-a-half or maybe even two months behind is more like going on an autopsy on a dead body. What the market is interested in is the way forward. Does that slowdown in the GDP indicate a continued slowdown in the economy and that is where if you look at the October and the November prints, they have been very encouraging. UCO Bank, other PSU bank stocks rally up to 8% as investors expect CRR cut from RBI
UCO Bank, other PSU bank stocks rally up to 8% as investors expect CRR cut from RBIUCO Bank Share Price: Shares of PSU banks, including UCO Bank and Central Bank of India, rose up to 8% on Wednesday as the RBI's rate-setting panel meeting began. Brokerages anticipate a potential cut in the cash reserve ratio (CRR), with Citi highlighting that a 50 basis point reduction would benefit PSU banks like PNB, SBI, and Bank of Baroda. Sovereign Gold Bond premature redemption price: Withdraw this SGB series at 158% higher than issue price
India’s GDP set to rebound amid policy shifts and capex boost: Mark Matthews
RBI’s December policy preview: On the horns of a dilemma
RBI’s December policy preview: On the horns of a dilemmaRBI’s current policy approach faces a dilemma between cutting rates to boost the economy or maintaining them to control inflation. While India's growth remains strong at 7.2% for FY23, recent GDP deceleration and inflation present challenges, necessitating a careful balancing act by the central bank. Banks should adopt 'bottom-up' approach for preparing credit plan: RBI's Swaminathan
Banks should adopt 'bottom-up' approach for preparing credit plan: RBI's SwaminathanRBI Deputy Governor Swaminathan J suggested that banks use a bottom-up approach to prepare credit plans to meet the fund needs of different segments in districts. He emphasized using field surveys for data collection and focusing on underserved groups like Self-Help Groups, small and marginal farmers, and MSMEs, especially those led by women. Qcomm expands; Black Friday sales grow
RBI cancels registration of Nagpur-based Zavron Finance
RBI cancels registration of Nagpur-based Zavron FinanceThe RBI has cancelled the certificate of registration of Zavron Finance due to irregular lending practices, including outsourcing core decision-making functions and failing to carry out proper due diligence. The company has also violated fair practices code by not providing loan agreements in vernacular language. Zavron Finance is now barred from operating as a non-banking financial institution. Make in India has become "Make-Believe in India": Jairam Ramesh on GDP report
Make in India has become "Make-Believe in India": Jairam Ramesh on GDP reportCongress MP Jairam Ramesh criticized the Central government for its inability to enhance private investment in manufacturing. The recent GDP growth figures for July-September 2024 indicate a slowdown to 5.4%. He highlighted the decline in manufacturing growth to 2.2% and concerns over stagnant manufacturing and export sectors, despite the Make in India initiative introduced ten years ago. RBI moves, asset quality to push NBFCs slow down asset growth to 15 pc in FY25, FY26: Crisil
RBI lifts its supervisory restrictions on Sachin Bansal-led Navi Finserv Limited
RBI lifts its supervisory restrictions on Sachin Bansal-led Navi Finserv LimitedThe Reserve Bank of India announced the removal of supervisory restrictions on Navi Finserv Limited. This decision follows multiple interactions and submissions from the company, which led to rectifying deficiencies and implementing revamped processes. The RBI is satisfied with the company's commitment to regulatory guidelines, particularly concerning fairness in loan pricing. Rupee remains one of the best-performing Asian currencies: MoS Finance
Rupee remains one of the best-performing Asian currencies: MoS FinanceThe Indian Rupee remains strong among Asian currencies despite facing depreciation pressures due to a stronger US Dollar and geopolitical tensions. This stability reflects India's resilient economic fundamentals. The Reserve Bank of India monitors global developments and intervenes to ensure orderly market function. FDI inflows have seen a decline from $43 billion in 2019-20 to $10.1 billion in 2023-24. India's weak Q2 growth widens divide between government, Reserve Bank priorities
RBI has a 3 body problem, CRR cut may be first painkiller in its prescription
RBI has a 3 body problem, CRR cut may be first painkiller in its prescriptionIndia's Q2 real GDP growth slowed to 5.4%, the weakest in seven quarters, creating a dilemma for the Reserve Bank of India (RBI). As the Monetary Policy Committee (MPC) meets from December 4-6, it may shift focus from inflation management to supporting growth. Experts suggest RBI Governor Shaktikanta Das may cut the cash reserve ratio (CRR) before reducing interest rates in February. Rate cut is unlikely but RBI may signal it's ready to act
Rate cut is unlikely but RBI may signal it's ready to actThe Reserve Bank of India's Monetary Policy Committee is expected to focus on faltering economic growth rather than inflation during its December 4-6 meeting. Despite calls for lower interest rates, the RBI's commitment to controlling inflation and promoting financial stability may prevent a rate cut, even as growth targets face challenges. Gold loans from banks surge, other personal loans see moderate rise
Gold loans from banks surge, other personal loans see moderate riseOutstanding gold loans from banks increased by more than 50% over the past year, driven by consumer distress and emergencies. Other personal loan segments saw moderate growth amid high inflation, elevated borrowing costs, and tighter regulatory norms. Second-quarter GDP growth hit a seven-quarter low, with inflation reaching a 14-month high. GDP shocker & 7 other factors to decide Sensex, Nifty movement this week
GDP shocker & 7 other factors to decide Sensex, Nifty movement this weekSensex and Nifty movements this week will be influenced by several factors, including weak Q2 GDP data, auto sales figures, FII selling trends, and the upcoming RBI meeting. Other key considerations include technical analysis, geopolitical tensions, global economic data points, and crude oil prices. Analysts expect market sideways movements for the next 6-12 months. Time to cut interest rate to spur GDP growth, says economist Charan Singh
Time to cut interest rate to spur GDP growth, says economist Charan SinghCharan Singh, CEO of EGROW Foundation, expressed disappointment in India's second-quarter GDP growth of 5.4%, urging faster corrective measures and interest rate reductions. He emphasized India's higher growth potential, suggested the inflation target be between 2-6%, and encouraged private sector involvement to boost economic growth, highlighting the government's role as a visionary for the next 25 years. Best dynamic bond funds to invest in November 2024
Best dynamic bond funds to invest in November 2024Dynamic bond funds have the freedom to invest across securities and maturities depending on the outlook of the fund manager. So, when the rates go up, the fund manager might bet on short term securities as a rate hike will marginally impact them. When rates start falling, he will invest in long-term instruments to make money. Consumption, thoda growth lift kara do
Consumption, thoda growth lift kara doReal GDP growth in Q2 2024-25 drops to 5.4%, complicating RBI's decision on interest rates amid high food inflation. Urban households cut non-essential spending, and private investment slows, awaiting a revival in consumer spending. Government spending may boost growth, but export challenges persist in a high-interest rate environment. 