The Hindu Business Line : Wednesday, April 22, 2009

MONEY & BANKING

CRR & BANK RATES: RBI cuts repo rates
Prods banks to reduce lending, deposit rates; ICICI Bank responds. Mumbai, April 21 The Reserve Bank of India on Tuesday cut key policy rates – repo and reverse repo – by 25 basis points each in order to push banks to lend more at ...

CREDIT MARKET: Why the banks won’t lend even if they lower interest rates
New Delhi, April 21 You can take a horse to water but can you make it drink? This is the question that the Reserve Bank of India has failed to answer in its Annual Policy Statement for ...

TECHNOLOGY: ‘No prior approval needed to set up offsite ATMs’
Mumbai, April 21 In a move that would allow banks to expand their ATM networks more easily, the Reserve Bank of India has done away with the requirement of prior regulatory approval for setting up offsite ATMs. These are standalone ATMs ...

INTEREST RATES: Banks to give more on SB accounts
New methodology to calculate interest on daily basis. Hyderabad/ Bangalore, April 21 If you have a salary account/savings bank account in a bank, it is better if you withdraw money as per your requirements instead of at one go. From next April, ...

INSIGHT: More of a stop-gap policy
The RBI’s Annual Policy Statement for 2009-10 gives one the impression that, in relation to major initiatives needed to solve the ongoing problem of declining growth, it is a stopgap approach pending the presentation of the Union ...

INTERVIEW: ‘We want to send definitive policy signals to lower lending rates’
It is not correct to say that banks have not responded: RBI Governor. Mumbai, April 21 “We want to send a definitive policy signal to banks that lending rates must come down.” This was RBI Governor, Dr D. Subbarao’s response ...

CRR & BANK RATES: Reinforcing the pro-growth stance
In his maiden Annual Monetary and Credit Policy review, the RBI Governor, Dr D. Subbarao has reinforced the central bank’s pro-growth stance amidst a highly challenging global environment. While the central bank has ...

CRR & BANK RATES: A balancing act
The market has approached the monetary policy with a positive note and bullish ...

CREDIT MARKET: Quick on its feet
The RBI has cut the repo and reverse repo rates by 0.25 percentage points each, to 4.75 per cent and 3.25 per cent respectively, while the CRR has been kept unchanged. Some segments of the market were expecting a cut in the key rates, with ...

CRR & BANK RATES: Proactive approach
The RBI’s Monetary Policy statement for 2009-10 needs to be seen in the context of the series of extraordinary measures it had taken since September 2008, when it first reversed course from the tightening stance and started ...

CRR & BANK RATES: Measured easing
In the last policy announcement in January 2009, the RBI had projected a 7 per cent growth for 2008-09 with downside risks. Now, with the median growth forecast down to 6.6 per cent, there is little doubt that those risks have manifest ...

FOREX: Rupee ends lower in choppy trade
The rupee was choppy as it tracked the domestic equity market and other Asian currencies. It opened weaker at 50.60 because the dollar was strong against other Asian currencies. This was followed by inflows as exporters sold dollars, which ...

GOVT BONDS: Bond markets rally
The bond markets saw huge volumes on Tuesday, buoyed by the cut in the repo and the reverse repo rates by 25 basis points. The total traded volumes on the order matching system stood at Rs 27,225 crore. Since the markets were divided over ...

STANDARDS & BENCHMARKS: ‘All banks are Basel-II compliant’
All commercial banks were Basel-II compliant as on March 31, 2009, the Reserve Bank of India said. Initially the base approach of the Basel II framework had been adopted, the central bank said. As for the advanced approach to the Basel-II ...

SHORT TERM INSTRUMENTS: Call rates a tad lower
Inter-bank call rates closed at 3.30-3.40 per cent, against the previous close of 3.50-3.60 per cent. In the first liquidity adjustment facility (LAF), there were no bids in the one-day repo auction. In the reverse repo auction, there were 26 ...

CRR & BANK RATES: RBI eases FCCB buyback norms further
To increase permissible amount to $100 m. Mumbai, April 21 The Reserve Bank of India on Tuesday further eased norms for Indian companies to use their internal accruals for buy-back of their foreign currency convertible bonds, as corporate houses ...

SECURITISATION: Minimum lock-in period for securitising loans proposed
Mumbai, April 21 The Reserve Bank of India on Tuesday proposed a minimum lock-in period for banks to hold on to their loans, in a bid to prevent them from immediately securitising loans after originating or purchasing from ...

CRR & BANK RATES: Maintaining a low interest rate regime
The annual Monetary Policy announcement has come in the backdrop of the global financial and credit market turmoil. The economy has been adversely impacted by the global headwinds since last October, prompting swift and effective ...

CRR & BANK RATES: ‘RBI’s stance on foreign banks reasonable’
Chennai, April 21 Mr Peter Sands, Group Chief Executive, Standard Chartered Bank, and Mr Neeraj Swaroop, Chief Executive, India & South Asia, were in Chennai on a whistle-stop tour, meeting their clients and staff in the southern ...

CRR & BANK RATES: Changes in BPLR system on the cards
Mumbai, April 21 The Reserve Bank of India has decided to constitute a Working Group to review the present benchmark prime lending rate (BPLR) system and suggest changes to make credit pricing more transparent. The Working Group would consult ...

CREDIT POLICY: Symbolic cuts
Central bankers around the world are an unenviable lot these days as they grapple with an economic downturn that is yet to respond in full measure to their monetary policies. For RBI Governor, Dr D. Subbarao, the limits of monetary policy are ...

FINANCIAL INSTITUTIONS: Kannur to get KSIDC growth centre
The Kerala State Industrial Development Corporation (KSIDC) is in the process of establishing an industrial growth centre in Kannur ...

CRR & BANK RATES: Guidelines soon on pre-paid payment instruments
Kolkata, April 21 The Reserve Bank of India plans to permit scheduled commercial banks with the eligibility criteria to issue all categories of pre-paid payment instruments and eligible non-bank entities, including NBFCs, to issue ...

RBI & OTHER CENTRAL BANKS: ‘A signal to banks to lower prime lending rates’
Knitwear garment exporters in Tirupur say the RBI’s measure at cutting the repo and reverse repo rate by 25 bps is a signal to the banks for lowering their prime ...

INTEREST RATES: ICICI Bank cuts lending, deposit rates
Mumbai, April 21 ICICI Bank on Tuesday announced a 50 basis points cut in its corporate and retail lending rates with immediate effect. The bank also said it is cutting fixed deposit rates across various tenors by 25 to 50 basis points, ...

CRR & BANK RATES: ‘Assurance on govt borrowing programme comforting’
Mumbai, April 21 The cut in key interest rates by 25 basis points, together with the assurance by the Reserve Bank of India Governor that the additional government borrowing programme will be managed without putting pressure on bond yields ...

FINANCIAL POLICY: Opening up banking sector for foreign players deferred
Mumbai, April 21 The Reserve Bank of India has deferred the opening up of the banking sector for foreign players and decided to continue with the current policy and procedures governing the presence of foreign banks ...

CONSUMER FINANCE: Tight financing impacting 2-wheeler sales: Honda CEO
Mumbai, April 21 More than high interest rates, stringent conditions laid down by financiers are hitting the two-wheeler industry, said Mr Shinji Aoyama, CEO and President, Honda Motorcycle & Scooter India ...

CREDIT POLICY: Signal for banks to cut lending rates: Chawla
New Delhi: The Reserve Bank of India has given a definitive signal to banks to further reduce their lending rates, according to the Economic Affairs Secretary, Mr Ashok ...

CRR & BANK RATES: Giving a leg up to economic growth
The 0.25 percentage point cut in repo and reverse repo rates by the Reserve Bank of India confirm its commitment to ushering in a low interest rate regime despite the fact that huge Government borrowings might drive up the ...