"We are looking at it with unhappiness. We feel, the signal should have been stronger... Many people would say that the signal should have been more robust than 25 basis points", said Montek Singh Ahluwalia as he commented on RBI's decision.
The RBI, as per the report, has decided to bring a boost in growth by cutting short-term rate to 7.5% i. e. by 0.25%. However, the decision taken by t5he RBI has been appreciated by Planning Commission Deputy Chairman Mr. Ahluwalia.
Union Finance Minister P Chidambaram on Monday asked public sector banks (PSBs) to take firm steps to recover bad loans.
Taking a stricter stance on bad loans, Mr. Chidambaram said, "We wish banks to take firm steps to recover NPAs. Country cannot afford to have affluent promoters and sick companies".
The statement was apparently made in a reference UB Group chairman Vijay Mallya, whose grounded airline Kingfisher owes around Rs 7,000 crore to banks.
He stressed that promoters would have to bring additional money and companies were obliged to pay back loans.
As had widely bee expected, the Reserve Bank (RBI) on Tuesday cut its key lending rate by 25 basis points to 7.5 per cent.
While the repo rate - the rate at which it lends short-term funds to banks - was lowered by a quarter of percentage point in a bid to boost the sagging economy, cash reserve ratio (CRR) was left unchanged at 4 per cent. CRR is the portion of deposits that banks have to park with the central bank on a fortnightly basis.
After the allegations were leveled by news portal Cobrapost, three banks caught in the sting operation have launched their individual investigations into the matter. The three private banks that are under scanner are ICICI Bank, HDFC Bank BSE 0.75 % and Axis Bank BSE -1.28 %.
Some bankers at these banks were seen in a sting operation telling customers to avoid tax by declaring oneself as a farmer, offering lockers to hoard cash, and investing these funds in insurance products.
According to recent reports, federal bond yields rose on Monday to 7.89% as cash reserve ratio (CRR) cut is policy is expected.
The Reserve Bank of India (RBI) is expected to decrease the interest rates by 25 basis points on Tuesday. It is also expected that RBI will cut the cash reserve ratio. The expectations were revealed after P. Chidambaram, the Finance Minister of India, announced on Monday that the central bank will try to cope with the cash tightness.
The government has reportedly asked public sector banks (PSBs) to take new initiatives, such as appointment of nodal officers, to recover bad loans and manage Non-Performing Assets (NPAs).
Recently published official figures revealed that a total of 27 PSBs hadn't recovered loans worth 68,262 crore, as of March 2012, from more than 7,000 individuals or companies.
A recent report has uncovered that Mukesh Ambani, India's business magnet, is to quit his position of the Bank of America's board of director.
Yes! It has been revealed that he in its place would be joining the global advisory council. The announcement had been made by the bank on Friday.
Since March 211, Mr. Ambani has served on the board of directors of Bank of America. Also, before the development of the Global Advisory Council, he held the position of director.
The Reserve Bank of India (RBI) is no longer seeing current account deficit (CAD) as an impediment to a cut in key interest rates.
Allaying CAD fears, RBI Governor D Subbarao said on Wednesday that there were four reasons why another cut in interest rate would not result into wider CAD.
He said a rate cut would unlikely to boost import demand as the growth is sluggish. Secondly, rate cut in January showed that it would enhance the country's export competitiveness.
Union Finance minister P Chidambaram has expressed hope that the Reserve Bank of India (RBI) will cut key interest rates in its upcoming monetary policy review on January 19.
Mr. Chidambaram claimed that the government has played its role on the fiscal consolidation path, and now it expected the RBI to take the overall broad economic situation into account and while taking a call on interest rate.
Asian Development Bank's chief Haruhiko Kuroda may soon be appointed as Bank of Japan's (BoJ's) next governor, sources said
Citing anonymous sources, Reuters reported that Japan's Prime Minister Shinzo Abe was preparing to nominate Kuroda for the central bank's top position.
Sixty-eight-year-old Kuroda, a financial sector expert with a masters' degree from Oxford University, has been serving Asian Development Bank's as president since the year 2005. Previously, he served as the country's top currency diplomat following Asia's financial crisis in the late 1990s.