For borrowers, the new framework is aimed at making loan pricing more transparent. But it may also mean more volatility in their EMIs
Banks will also have to create an Investment Fluctuation Reserve (IFR) to protect against an uptick in yields in the future.
ICRA’s estimates earlier this month had suggested that with a 40 bps further rise in bond yields during the current quarter, the losses on bond portfolios could be upwards of Rs 12,000 crore during Q4 FY18
This comes at a time when most banks are still hesitant on meeting the RBI’s suggestion last month to link home loans to external benchmark rates.
A favourable demand-supply balance of G-secs by increasing demand through reducing their supply and also lowering downward rigidity on operative overnight rates, RBI can ensure better transmission and help government save Rs 10,000 crore annually on interest cost, says a report.
Ahead of merger, State Bank of India (SBI) has called upon retired officers to become concurrent auditors with the bank to oversee compliance and risks under loans and operational activities.
Market was focusing on Axis Bank‘s result to check the impact of demonetisation, but were taken aback after it was revealed that the bank is still struggling from its legacy issue.
The U.S. dollar hit a nine-month peak in Asia on Monday as the risk of faster domestic inflation and wider budget deficits sent Treasury yields ever higher, a painful mix for assets in many emerging market countries.
Here is CNBC-TV18's Ritu Singh who polled treasury heads and economists from across India's top banks with this report on what we can expect from Governor Raghuram Rajan this credit policy.
Leaving the European Union would tip Britain into a "year-long recession", finance minister George Osborne warned on Monday as campaigning stepped up a month from a referendum on membership of the bloc.
Pfizer is negotiating a price of USD 370 to USD 380 for each Allergan share, a person familiar with the discussions said, asking not to be identified because the talks are confidential.
Macquarie expects a 1.5-2 percent benefit to JPL's PAT due to saving in interest costs. However, due to the slight dilution, there is no material impact on FY16-FY17 earnings per share, it adds.
On India, Michael Every of Rabobank feels the market here is dominated by political issues. "The overall picture is good and investors are waiting for a policy push," he says. He, however, cautions that a lot depends on Fed policy ahead.
Total income rose to Rs 3,598.89 crore during the fourth quarter of the 2014-15 fiscal from Rs 3,372.48 crore in the year-ago period.
The fallout from diverging central bank policies sparked a dollar rally and stock market selloff Tuesday, as traders reacted to the European Central Bank's bond-buying program and the fact the Fed could signal it is getting even closer to a rate hike when it meets next week.
This is the first time ever that rates are this low, as even during the 1930s rates were well above current levels, says a Citigroup official
The dramatic buying and big swing in rates coincided with a swift downdraft in stocks and was blamed on a combination of factors.
Third-quarter earnings for UCO Bank from treasury gains as the banking system witnessed large FCNR deposits and as bond yields came down thanks to the Reserve Bank of India‘s recent liquidity-boosting measures, Arun Kaul, Chairman, UCO Bank, told CNBC-TV18.
With product chief Mary Barra set to take over as CEO next month after Dan Akerson's retirement, the No. 1 U.S. automaker has been tending to financial matters that will allow her to focus on operational issues and on shoring up the money-losing European operations.
The "Stock Trader's Almanac" says the official "Santa rally" takes place in the several days after Christmas, but traders expect to see a fairly merry market clear on through December now that the November jobs report is out of the way.
Arnab Das, managing director of market research and strategy, Roubini Global Economics feels the dysfunction in Washington is so great that there is quite a good chance of a government shutdown and some scathing remarks around the debt ceiling.
Spot gold had dropped 0.09 percent to USD 1,319.46 an ounce by 0008 GMT. It fell 2 percent on Wednesday as signs of continued economic recovery prompted funds to exit the bullion market after the metal hit a one-month high earlier in the day.
Stein's speech, and a separate one on Friday by Jeffrey Lacker, president of the Richmond Fed, had some parallels to efforts by other Fed officials earlier this week to soothe market anxieties about a pullback in the bond purchases.
The profitable trade for foreign funds to invest in domestic debt instruments is withering away as yield differentials are narrowing fast between the US and Indian government bonds, owing to a steep fall in the rupee and squeezing the overall arbitrage opportunity.
Federal Reserve's massive asset purchases have so far not disrupted markets as some have feared and the bonds remain readily available, according to the US central bank official responsible for running the quantitative easing program.