Deep haircuts: Comparing realisations with outstanding loans not reasonable to assess IBC effectiveness, says RBI DG

Deep haircuts: Comparing realisations with outstanding loans not reasonable to assess IBC effectiveness, says RBI DG

Seeking to address concerns over the deep haircuts taken by banks in some of the insolvency resolutions, Reserve Bank Deputy Governor M Rajeshwar Rao on Saturday said comparing the outstanding loan amounts with the value realised may not be a ‘reasonable indicator’ to assess the bankruptcy law’s effectiveness. Admitting that there have been concerns, Rao … Read more

May take India more than a decade to ‘overcome losses’ caused by Covid: RBI Report

May take India more than a decade to ‘overcome losses’ caused by Covid: RBI Report

The Indian economy could take more than a decade to “overcome the losses” caused by Covid 19 disruptions, the latest report on currency and finance released by the Reserve Bank of India has suggested. The report has also projected that India lost more than a whopping Rs 50 lakh crore in output in the last … Read more

RBI extends cash credit limit for wheat procurement from Punjab

RBI extends cash credit limit for wheat procurement from Punjab

The Punjab government on Thursday said the RBI extended the cash credit limit (CCL) for the ongoing wheat procurement from the state. The Reserve Bank of India (RBI) extended the CCL of Rs 3,378.15 crore till the end of May. With this, the sanctioned limit of Rs 24,773.11 crore for April-end has been enhanced to … Read more

Govt’s 3.5% stake sale plan in LIC gets Sebi approval

Govt’s 3.5% stake sale plan in LIC gets Sebi approval

Mumbai: The capital markets regulator has relaxed certain requirements for the initial public offering of Life Insurance Corp of India (LIC). The Securities and Exchange Board of India (Sebi) has allowed the government to divest 3.5% in the insurer, exempting it from the mandatory 5% stake sale for large issues. Anchor investors in LIC’s listing … Read more

RBI fine-tunes capital norms for non-bank companies

RBI fine-tunes capital norms for non-bank companies

Mumbai: The Reserve Bank of India (RBI) has fine-tuned the capital norms for NBFCs, allowing revaluation of reserves from property to be counted as tier-1 capital instead of tier-2. It also permitted calculation of earnings subject to deductions of dividend based on past years. “Revaluation reserves arising out of change in the carrying amount of … Read more

Sharp rate hikes may not be just an option in future

Sharp rate hikes may not be just an option in future

Mumbai: A key derivatives-market gauge is pointing to aggressive increases in interest rates through this fiscal year and the next after the Reserve Bank of India (RBI)’s latest monetary policy review prioritised restraining inflation despite no immediate changes officially in either its stance or the cost of funds for the broader economy. The Overnight Indexed … Read more

Stagflation: Have the central banks scheduled a rerun of That 70s Show?

Stagflation: Have the central banks scheduled a rerun of That 70s Show?

2022 is beginning to look a lot like the 1970s. Raging oil prices, hawkish central banks and the mood on the Street point to stagflation, which occurs when an economy experiences rising inflation, slowing growth and increased unemployment at the same time. A recent fund manager survey by the Bank of America sees stagflation expectation … Read more

India’s foreign exchange reserves fall for fifth straight week

India’s foreign exchange reserves fall for fifth straight week

India’s foreign exchange reserves continued its fall for the fifth straight week as the Reserve Bank of India appears to be selling dollars from its coffers to prevent sharp depreciation of the rupee amid a surge in global crude prices. The reserves fell by $2.471 billion in the week to April 8 to $604.004 billion, … Read more

Import cover of forex reserves shrinks 30 percent in FY’22

Import cover of forex reserves shrinks 30 percent in FY’22

India’s strength in the external sector may be shaking as imports sure amidst capital outflows on account of tightening of policy rates by the US Fed. India’s $600 billion strong forex reserves are adequate to finance 12 months’ imports as of March 2022 , down 30 per cent in a year since March 2021 As … Read more

June or August? Timing – and quantum – of rate hikes dominate D-Street chatter

June or August? Timing – and quantum – of rate hikes dominate D-Street chatter

Two months, a war in Europe’s eastern rim, and oil at 140 dollar a barrel: These data points seemed to have prompted policymakers in Ballard Estate to align themselves with other central bankers in their collective fight against the common foe –inflation. In February, before Vladimir Putin had ordered the invasion of Europe’s breadbasket to … Read more