The RBI has also reduced its repo rate by 25 bps to 6 percent.
Analysts at Motilal Oswal Financial Services estimated that banks in their coverage universe could see an increase of 20–250 bps in CET-1 capital ratios due to the policy shift
While these measures aim to increase banks’ appetite for microfinance loans, given the recent asset quality challenges in this segment, growth will continue to remain muted for microfinance segment in the near term
After the latest developments, revenue growth is likely to decelerate, margins may come under pressure and losses can widen.
The move will slow down growth in consumer credit and adversely impact the earnings of banks and NBFCs
These banks are Gondia District Central Co-operative Bank Limited, Gondia (Maharashtra), Shirpur Peoples’ Co-operative Bank Ltd, Shirpur (Maharashtra), and Tirupati Urban Co-operative Bank Ltd., Nagpur
Shyamala Gopinath suggested banks to fast-track process to facilitate early recovery. She said RBI measures, like the one which requires banks to report all large corporate credits to the central repository, is a positive one
Fed rate hike has not impacted the domestic forex market significantly for the time being, said Soumya Kanti Ghosh, Group Chief Eco Advisor, SBI.
R Gandhi, Former RBI Deputy Governor said with the new framework in place there could be an uptick in non-performing assets (NPAs) because what need not have been recognised as an NPA will now be recognised as one.
According to Kotak Institutional Equities, besides rising retail inflation, the other factors that are expected to keep RBI's Monetary Policy Committee (MPC) on guard include clarity on monsoons, MSP hike decisions and crude oil prices.
The Reserve Bank of India today fixed the reference rate of the rupee at 63.9097 against the US dollar and 80.1683 for the euro.
Any element of negative newsflow is only going to drive the yields higher, said Amandeep Chopra, Group President & Head of Fixed Income, UTI MF.
Inflation will rise from here but despite that do not expect the RBI to hike rate but stay on hold for full of 2018, said Vivek Rajpal, Rates Strategist, Nomura India.
Reforms are done in two ways, incrementally and fundamentally, currently we are doing incremental reforms, says former RBI governor, YV Reddy.
Big defaulters were given ample time before bankruptcy proceedings were initiated, he said SS Mundra, Deputy Governor
There is 70 percent probability of rate cut in August, said Sonal Varma, MD & Chief India Economist, Nomura Financial Advisory & Securities.
Liquidation is not necessarily something that everybody is trying to push for, said Sanjeev Sanyal, Principal Economic Adviser, Finance Ministry.
There are various possibilities and various formulations which have been under active discussion within RBI as well as with the government of India, said RBI Deputy Governor SS Mundra.
Ajay Srivastava, CEO, Dimensions Corporate Financial Services says this kind of stance in the backdrop of low GDP growth is surprising because one would have liked to see the economy being propelled rather than focusing on inflation
The decision of the monetary policy committee (MPC), headed by new RBI governor Urjit Patel, will likely cheer business leaders and households as cheaper loans will aid investment and spending.
The Reserve Bank of India (RBI) on Thursday retained State Bank of India and ICICI Bank , the nation's top two lenders by assets, as "domestic systemically important banks", or the equivalent as "too big to fail" for a second consecutive year.
The rupee's appreciation reflects a broad move into high yield emerging markets by investors, as central banks for major economies - notably the Bank of Japan and European Central Bank - have adopted a more dovish stance.
These swap transactions would have a minimum tenor of three years, the central bank said in a circular on Thursday.
The Reserve Bank of India (RBI) said foreign investors would also be allowed to buy into debt issued by the country's states for the first time, although only up to 2 percent of outstanding debt, or totalling 500 billion rupees by March 2018.