Bankers Trust:

Should RBI intervene in currency market?

Reserve Bank of India (RBI) deputy governor Subir Gokarn has hinted that the Indian central bank is close to the end of its monetary tightening cycle as inflation is likely to slow next year. If indeed inflation slows and RBI ends its record rate raising series, it will be good news for the world’s 10th largest economy. RBI started its tightening cycle in January 2010 by raising banks’ cash reserve ratio (CRR), or the portion of deposits that commercial banks need to keep with it, and, since March 2010, it has raised its key policy rate 12 times.

Bankers Trust:

Shachindra Nath | We are looking for the right partners

Shachindra Nath | We are looking for the right partners

Mumbai: Religare Enterprises Ltd, the financial services company controlled by billionaire brothers Malvinder and Shivinder Mohan Singh, is positioning itself as a serious contender for a banking licence. In an interview, Shachindra Nath, group chief executive of Religare Enterprises, said the company is scouting for partners in India and overseas who understand the rural market. Nath also explains why the company should be given a banking licence, even though Religare has an exposure to the broking business and the company is not widely held, two critical criteria that the Reserve Bank of India (RBI) has set in its draft licensing norms released in August.

Bankers Trust:

Anatomy of 12 rate hikes in 19 months

The tightening cycle, in fact, started even before that, in January 2010, when RBI raised banks’ cash reserve ratio, or the portion of deposits that commercial banks need to keep with RBI. Has the Indian central bank reached the end of its rate tightening cycle with the latest round of 25 basis points (bps) rate hike on Friday? One bps is one-hundredth of a percentage point. The mid-quarter policy statement doesn’t indicate so.