The demand for SLR comes after the RBI has cut cash reserve ratio by 100 basis points to improve liquidity
According to Reserve Bank of India’s August Bulletin, investment of scheduled commercial banks stood at Rs 56.71 lakh crore, as on June 30, compared to Rs 54.15 lakh crore, as on March 24
More time to comply with PSL requirements takes away the immediate burden from the bank. Similarly, clarity on holdings in investments and subsidiaries will clear air for investors.
Instead of relying blindly on the security structure, it pays to closely scrutinise the borrower
The overall tone of the policy was a bit dovish, with inflation forecasts being cut substantially. The bond markets reacted positively, and the 10-year yield closed at 7.44 percent.
"We currently forecast stress loans to peak in FY16—but see risk to asset quality stretching into FY17 if the macro recovery continues to be elusive and commodity prices fall," says a report by Goldman Sachs.
Until the announcement, only 7 percent of the SLR bonds could be counted under LCR bonds.
To align them, it has been decided to bring down the ceiling on SLR securities under HTM to 21.50 percent from 22 percent with effect from the fortnight beginning January 9, 2016.
"Our CP portfolio was only Rs 7,000 crore at the end of the June quarter. This rose to Rs 23,000 crore as of end-September," the bank's Deputy Managing Director and Chief Financial Officer Anshula Kant told PTI.
Chris Wood, CLSA says foreigners will want to buy more Indian bonds given RBI Governor Raghuram Rajan's new inflation targeting regime, based on CPI, while the relaxation in the SLR should create more room for banks to lend.
Interest rate on domestic term deposits has been reduced between 0.10 percent and 0.50 percent on select maturities with effect from August 10, PNB said in a statement.
Reserve Bank of India is likely to keep the benchmark repo rate unchanged at 7.25 percent in its policy review meet next week, a DBS report says.
The slowdown in factory output growth also led to the companies turning cautious on their hiring plans, HSBC said, while adding that RBI is likely to cut interest rate with inflation under control and growth losing steam.
Government has acquired IFCI's 6,00,00,000 Preference shares of Rs 10 each from certain scheduled commercial banks and has consequently increased its holding from 47.93 percent to 51.04 percent of the paid-up share capital.
Sonal Varma, chief economist, Nomura does not see any rate cut in April. She believes the RBI has frontloaded the interest rate cuts in order to give more time to banks to respond going forward. She feels there is the probability of one more rate cut after that.
According to the global financial services major, strong GDP prints in 2013-14 and 2014-15 are driven more by "statistical factors" after India released a new GDP series on January 30 rather than a pick-up on the ground.
The RBI Tuesday kept the repo rate unchanged as was widely expected, citing lack of any new developments on inflation as well as the government‘s fiscal consolidation efforts.
According to a CNBC-TV18 poll, the market believes the fall in food inflation and the steeper fall in crude has raised the decibel level of those wanting a rate cut. However, majority of the bankers and economists polled say governor Rajan will yet again keep policy rates unchanged on December 2.
The RBI in its third Bi-Monthly Monetary Policy review on 5th Aug 2014 maintained its status quo by keeping the repo and reverse repo rate unchanged at 8% and 7% respectively.
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Cash flows are under a lot of pressure which has resulted in a slight increase in gross NPA and net NPA, says OBC CMD SL Bansal. Meanwhile, the bank aims to maintain net interest margin in the range of 2.85-2.87 percent ahead.
The Indian rupee recently hit record low at 61.32/USD. Since May, it has lost more than 11 percent against the greenback. This along with the widening current account deficit (CAD) have prompted the authorities to burn the midnight oil to devise strategies in wooing overseas investors.
The Reserve Bank today hinted at allowing part of the statutory liquidity ratio (SLR) holdings of banks to be treated as liquid assets under the Basel-III guidelines, which will come into effect next fiscal.
SMC Global has come out with its report on Reserve Bank of India (RBI)'s mid-quarter monetary policy review. According to the research firm, central bank is expected to shift gears in order to focus on growth through monetary easing in Jan 2012; at the same time keeping a track on inflationary pressure.
The Reserve Bank of India's Deputy Governor H.R. Khan on Tuesday dismissed talk of corporate bonds in India getting statutory liquidity ratio (SLR) status.