BUSINESS
Banks' liquidity shortfall eases sharply to around Rs 20,000 crore, lowest since going into deficit in December
Economists had pegged the auction to provide around Rs 85,000-88,000 crore worth of liquidity into the banking system.
BUSINESS
Banks borrow lowest funds via daily VRR auctions on March 4 since inception of instrument
However, despite today’s borrowing by banks was lowest, but the banks have borrowed less amount at 21 auctions than notified amount, out of total 31 auctions.
BUSINESS
Without embracing technology, companies will not exist, says KV Kamath
KV Kamath said companies should recognise the speed of changing technology in the context of risk, so that they are not left behind. He said managements must counsel their companies about the rate of change of Artificial Intelligence, and how businesses are going to use it.
BUSINESS
Private banks more successful than PSU banks in attracting deposits this fiscal
A lower deposit growth this fiscal has meant that PSU banks have lost the deposit market share by 10-70 basis points (bps) on-year, the IIFL Capital report said.
BUSINESS
Rebound in December GDP, likely lower February inflation spurs hopes of another RBI rate cut in April
The GDP growth rebounded in the December quarter after sinking to a seven-quarter low, and with a lower reading on inflation expected in February, economists are penciling in a higher probability of a RBI rate cut in April.
BUSINESS
MC Explainer: How the RBI’s USD/INR swap auction may ease liquidity crunch
The central bank is set to conduct $10 billion USD/INR Buy/Sell swap auction for a tenor of 3 years on February 28. This move will inject rupee liquidity for longer duration in the banking system of roughly Rs 85,000 crore.
BUSINESS
Currency derivatives open interest rises as rupee volatility spurs hedging
According to the Bloomberg data, the Indian rupee has depreciated to 87.2025 against the US dollar as on February 26, as compared to 83.8213 on October 3, 2024.
BUSINESS
Microfinance sector’s portfolio at risk 31-180 days rises sharply to 6.4%
Banks and small finance banks’ PAR 31-180 rose to 6.8 percent and 7.2 percent respectively as of December 31, 2024, compared to 2.3 percent and 2.8 percent, a year ago.
BUSINESS
FPI funds in Govt bonds fall as gap between India, US bond yields narrows
FPI investment in Fully Accessible Route (FAR) securities stood at Rs 2.66 lakh crore as on February 24, as compared to Rs 2.75 lakh crore as on February 7.
BUSINESS
Economists predict repo rate at 5.75% by mid-2025 amid concerns over growth
The hope for another rate cut has increased after the concerns showed by the monetary policy committee (MPC) members in the February policy minutes, and easing inflation trajectory.
BUSINESS
MC Interview| Repo rate only one of many factors that impact growth: RBI MPC member Nagesh Kumar
Kumar was one of the six MPC members who voted for a cut in the repo rate cut in the February monetary policy meeting due to growth concerns.
BUSINESS
Food inflation likely to soften in Q4FY25, says RBI MPC member Ram Singh
Food inflation declined to 6 percent in January, dipping below the 8 percent mark for the first time in four months, as cereals, vegetables and pulses continued their downward march.
BUSINESS
Govt stake in banks can come down further as lenders may need more funds: Bank of India CEO
These comments came when the government last month approved fund-raising plans of up to Rs 10,000 crore for five PSBs through QIP, and additional stake sales via OFS
BUSINESS
RBI DG raises concerns on 'excessive' unsecured borrowing, derivative euphoria in markets
Rao, who is currently in charge of monetary policy among other departments at RBI, said there was a need to ensure that excess financialisation through technology does not lead to over-leveraging.
BUSINESS
RBI declines investors' bids for 91-day, 182-day T-bills, a rare step amid tight liquidity
This has happened after nine years for the 182-day T-Bill, and after 23 months for the 91-day T-Bill, as per RBI data. Last time, when the central bank did not accepted bids on 182-day and 91-day T-Bills was on February 24, 2016, and on March 29, 2023, respectively.
BUSINESS
Short-term yield on corporate bonds higher than long-term yields due to tight liquidity
Yield on AAA-rated corporate bonds have remained inverted since 18-months for 10-year and 3-year, and since 13 months it is inverted between 10-year and 5 years.
BUSINESS
Flows in NRI deposits rises 43% in April-December 2024 to $13.33 billion, says RBI
Of the total between April and December 2024-25, FCNR(B) deposits have grown sharply by 87.3 percent to $6.47 billion, from $3.45 billion in a year ago period.
BUSINESS
Co-existence of deficit liquidity, heavy funds deployed in SDF show skewed distribution of liquidity: RBI Bulletin
System liquidity has turned into deficit since mid-December 2024 due to build-up in government cash balances driven by the usual quarter-end advance tax outflows, monthly GST payments, capital outflows and currency leakage.
BUSINESS
High frequency indicators point towards a sequential pick up in economic activity momentum in H2FY25: RBI bulletin
Industrial activity has recorded an improvement over the previous quarter, as reflected in the Purchasing Managers’ Index (PMI) in January, Bulletin said.
BUSINESS
Reliance Industries is India's most valuable company in Burgundy Private-Hurun India report
The Mukesh Ambani-led company was followed by Tata Consultancy Services and HDFC Bank.
BUSINESS
Economy needs support on growth side, RBI should first focus on liquidity, says Neelkanth Mishra
Mishra on the rate cut front said that further rate cut is recommended due to tight liquidity conditions, but more liquidity measures are required
BUSINESS
Auditors of AGS Transact issued an adverse report after Q3FY25 results
AGS Transact has defaulted/delayed in certain loan repayments, GST registrations in certain states have been suspended/cancelled and there have been delays in payment of statutory dues, employee salaries and vendor payments, a Crisil note observed.
BUSINESS
Government may increase deposit insurance amount, says DFS Nagaraju
At present, depositors of stressed banks, like those of New India Co-operative Bank, can claim up to Rs 5 lakh from the DICGC
BUSINESS
Under Malhotra, RBI has pumped in Rs 43 lakh crore in banking system to meet liquidity needs
Liquidity deficit swung from Rs 30,000 crore to Rs 3 lakh crore between December 16 and February 14 due to tax outflows, RBI intervention in the forex market and limited spending by government, the central bank's data shows
