14TH APR 2012: HDFC's Keki Mistry says repo rate cut likely soon
The largest mortgage player HDFC said there is a possibility of a cut in the repo rate or the rate at which banks borrow from the central bank, in the immediate future, but ruled out a reduction in cash reserve ratio.
"The amount of funds being raised by banks through the liquid adjustment facility has come down and is now hovering around RS 70,000-90,000 crore, which is not significantly higher than the reserve bank's comfort level of RS 60,000 crore.
"The amount of funds being raised by banks through the liquid adjustment facility has come down and is now hovering around RS 70,000-90,000 crore, which is not significantly higher than the reserve bank's comfort level of RS 60,000 crore.
So, any injection of liquidity (through a CRR cut) is unlikely.
“ However, reduction in interest rate during this quarter is very much expected," HDFC chief executive Keki Mistry told reporters
13 APR 2012: Liquidity challenge likely to re-emerge in 2012-13, says Standard Chartered
Projecting a challenging year for the Indian banking sector, global financial services major standard chartered said the liquidity challenge is likely to re-emerge in 2012-13, forcing RBI to take action.
"Our projections for FY13 indicate that the liquidity challenge is likely to re-emerge, necessitating RBI action," a research report from standard chartered said.
After 125 basis points (bps) of cash reserve ratio (CRR) reductions in the second half of 2011-12, it said "we expect the RBI to rely more heavily on OMOS (open market operations) in FY13".
Even if central bank cuts the CRR by another 50 bps, it may have to buy Rs 1.5 Lakh crore worth of government securities this fiscal, standard chartered said.
12 APR, 2012”: HSBC wants a bigger share of Indian banking business
HSBC rues the fact that expansion of banking business is still restricted for foreign entities in India, one of the fastest growing economies.
Its country head in India and director for Asia Pacific, Naina Lal Kidwai said that restriction of opening branches is an issue which very much bothers the management.
Foreign banks collectively account for less than 7% of banking business in the country while HSBC alone contributed 2% of it.
""India is slowing down. But a 7% growth is still one of the best growth rates anywhere in the world,"" she said. ""Our strength comes from the underlying strength of the economy,"" she said at an interaction with the media.
Its country head in India and director for Asia Pacific, Naina Lal Kidwai said that restriction of opening branches is an issue which very much bothers the management.
Foreign banks collectively account for less than 7% of banking business in the country while HSBC alone contributed 2% of it.
""India is slowing down. But a 7% growth is still one of the best growth rates anywhere in the world,"" she said. ""Our strength comes from the underlying strength of the economy,"" she said at an interaction with the media.
11 APR, 2012: Lending rates may not fall drastically in FY13, says Crisil
Corporate and retail borrowers will not see a significant reduction in lending rates in the current financial year owing to tightness in liquidity, higher Government borrowings and high cost of deposits, according to leading rating agency Crisil.
Lending rates are likely to drop by 25-50 basis points (0.25-0.5%) during this period, it said.
"Lending rates are likely to fall by 25-50 basis points (bps) over the next one year - lower than the 50-75 bps drop expected in repo rate as banks attempt to protect their margins," the agency said in a report
Lending rates are likely to drop by 25-50 basis points (0.25-0.5%) during this period, it said.
"Lending rates are likely to fall by 25-50 basis points (bps) over the next one year - lower than the 50-75 bps drop expected in repo rate as banks attempt to protect their margins," the agency said in a report
10 APR, 2012: Compensate bond investors at 8% for late interest credit: RBI
The Reserve Bank instructed banks to compensate investors in Relief or Saving Bonds (government securities) for the financial loss to them on account of delayed credit of interest at a rate of 8 per cent.
"...an agency bank should compensate an investor in relief/savings bonds for financial loss due to late receipt/delayed credit of interest warrants/maturity value, at a fixed rate of 8 per cent per annum," RBI said in a circular.
Interest on these bonds is paid either through interest warrants by registered post or credited to the investor's bank account.
Until now, banks were compensating the investors for the financial loss at their own savings bank rate.
The RBI's instructions follow deregulation of interest rate on savings bank accounts in October last year.
"...an agency bank should compensate an investor in relief/savings bonds for financial loss due to late receipt/delayed credit of interest warrants/maturity value, at a fixed rate of 8 per cent per annum," RBI said in a circular.
Interest on these bonds is paid either through interest warrants by registered post or credited to the investor's bank account.
Until now, banks were compensating the investors for the financial loss at their own savings bank rate.
The RBI's instructions follow deregulation of interest rate on savings bank accounts in October last year.
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