The Hindu Business Line : Wednesday, October 31, 2007

Preserving status quo
Traditionally, the IT and ITeS sectors have not been watching the Credit Policy reviews keenly as its impact on them is not very significant. But, of late, just as the IT players have become alive to the Fed Rate Meet to understand the dollar ... More

In the right direction
The economy continues to do well with GDP registering a growth of 9.3 per cent in the first quarter of this fiscal. Thoughthis is lower than the 9.6 per cent recorded in the same period last year, all the indicators are pointing towards ... More

RBI’s worry on inflation continues
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Stem the forex flows
Much has been said about the inevitability of death and taxes. Now the financial crisis appears to have gone out of the realm of probability to inevitability. That at least appears to be the backdrop of the Monetary Policy unveiled yesterday. ... More

Banks have to rejig rates
The most significant announcement by the RBI Governor, Dr Y. V. Reddy, is the hiking of CRR by 50 basis points. The Bank rate, the repo rate and the reverse repo rate have thankfully been kept unchanged. The policy has not ... More

Inflation still the key concern
In a somewhat unexpected move, the RBI has increased the CRR by 50 basis points to 7.50 per cent. The reverse-repo and repo rates have, however, been kept unchanged at 6 per cent and 7.75 per cent respectively.With no significant ... More

Mid-term Review of Monetary Policy 2007-08: Exceptional response
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Maintaining stability
The RBI continues to re-emphasise its policy preference for maintaining price stability and well-anchored inflationary expectations. However, given the sudden spurt in capital inflows beyond absorptive capacity, the near-term policy focus ... More

On expected lines
The stance of the RBI’s Monetary Policy appears to be moderate to hawkish. The RBI’s main concern is the increased capital inflows and their implications on the liquidity. As in the past, the RBI has continued with its policy of ... More

FOREX
We cannot afford shocks, says Chidambaram
New Delhi, Oct. 30 The Finance Minister, Mr P. Chidambaram, on Tuesday said the country needs to put in place appropriate regulations and risk management systems to manage the surging capital inflows even as he welcomed such flows into the ... More

Re impact: Special package for labour-intensive sectors sought
‘Pre-shipment, shipment credits will be offered at lower rates’ More

Rupee closes firmer
Even while the Reserve Bank of India has expressed concerns over the currency movements affecting the real sector as a whole, besides exporters, the rupee ended five paise stronger against the greenback on Tuesday.The RBI has today ... More

FINANCIAL PERFORMANCE
Karur Vysya Q2 net rises marginally
Coimbatore, Oct. 29 Karur Vysya Bank has registered a net profit of Rs 43.41 crore for the quarter ended September 2007 against Rs 42.56 crore during the corresponding quarter of the pervious fiscal. Clarifying on the marginal rise, ... More

Karnataka Bank Q2 net profit at Rs 60 cr
Karnataka Bank Ltd has recorded a net profit of Rs 60.14 crore in the second quarter of the current financial year as against Rs 59.61 crore in the corresponding period of the previous year, registering a growth of 0.89 per cent. Asked ... More

Equipment financing lifts Srei Infra Q2 net
Saud Siddique on board More

GENERAL INSURANCE
HDFC ties up with Ergo for non-life biz
New Delhi, Oct. 30 HDFC Ltd has tied up with Germany’s Ergo International AG as the new joint venture partner for its general insurance business.Ergo, a group company of reinsurance major Munich Re, under the agreement reached ... More

INTEREST RATES
‘No signal to raise interest rates’
New Delhi, Oct 30 The Finance Minister, Mr P Chidambaram, has said that the Reserve Bank of India’s move to raise the requirement for banks to keep cash with the central bank was intended to mop up excess liquidity from the system. ... More

CRR & BANK RATES
RBI raises cash reserve ratio in liquidity mop-up
Policy addresses ‘only part of liquidity overhang’; capital inflows still a challenge More

CRR hike: Auto index worst hit
Benchmark underperforms other indices More

‘CRR hike can be absorbed’

MONETARY POLICY
Banks may re-look at rates
Coimbatore/Mangalore, Oct. 30 While the CRR hike is viewed as a proactive measure by the Reserve Bank to keep the huge liquidity under check, control inflationary trend and protect the economy from being overheated, bankers say that the ... More

Norms for short sales relaxed
To widen and deepen g-sec markets More

EEPC wants forex market to be broadbased
Kolkata, Oct. 30 Calling for deeper financial reforms in order to help small and medium scale exporters tackle the problem of rupee appreciation, Mr Rakesh Shah, Chairman of Engineering Export Promotion Council (EEPC), said here today that ... More

‘Deposit rates may not go up in short term’
The Reserve Bank of India’s measure of hiking the cash reserve ratio by 50 basis points might not have any immediate impact on lending or deposit rates, feel senior bankers. The CRR hike will mop up about Rs 16,000 crore from the system; ... More

Asset price boom is a challenge, says RBI
10 banks identified as ‘outliers’ in realty, stock market exposure More

`On expected lines'

`RBI move appropriate'

`No major impact likely'

NON-PERFORMING ASSETS
RBI may ban recourse to recovery agents
Retail borrowers and credit card holders, who have been harassed by recovery agents sent by banks, may find some relief if the measures suggested by the Reserve Bank of India are put in place. In the mid-term annual review of the annual ... More

RESTRUCTURING
RBI guidelines on holding cos deferred to Nov-end
The Reserve Bank of India has postponed the date for issuing final guidelines on holding companies in banking groups, till the end of November.The bank had released a discussion paper on holding companies in banking groups and sought feedback, in ... More

OVERSEAS INVESTMENTS
‘Branch licensing cannot be reduced to quid pro quo’
Mumbai, Oct. 30 The US Treasury Secretary, Mr Henry M. Paulson, said his country is not keen on making market access for banks as a matter of bilateral quid pro quo in trade negotiations. He made this observation in the course of ... More