Mumbai: The government is planning to change the contours of a stock market investment scheme announced in the national budget that would qualify for income-tax (I-T) rebates. Instead of retail investors putting money directly in equities, as the budget proposed, the government may ask them to invest through mutual funds as they do not fully understand the risks, a person familiar with the development said. If at all, they may be allowed direct investment only in listed public sector firms, he said.
he downgrade of India’s rating outlook to negative from stable last week by global rating agency Standard and Poor’s, citing slow pace of fiscal reforms and diminishing growth prospects, was no surprise. Equally predictable was the reaction from the government. While C.
Mumbai: Reserve Bank of India’s deputy governor Anand Sinha, who holds the critical portfolio of banking and non-banking regulations and has been busy drafting new bank-licensing norms, said in an interview on Friday that non-performing assets of the banking system have almost bottomed out. By his estimate, at the worst about 20% of the restructured assets in the banking system can turn bad. Sinha also said the central bank is well prepared with the new bank licensing rules that can be released as soon as Parliament amends the banking law and empowers the regulator to supersede a bank’s board.
Mumbai: FirstRand Ltd, the second-largest bank in South Africa in terms of assets, has launched retail and commercial banking operations in India. To begin with, the bank intends to exploit the growing trade linkages between India and Africa and focus on financial inclusion in a big way. In an interview, Sizwe Nxasana, chief executive of FirstRand Group; Mahendran Moodley, country manager and CEO, FirstRand Bank, India, and Bobby Madhav, CEO, retail and commercial banking, FirstRand India, spoke about the lender’s long-term growth strategy in India.
The bellwether equity index of BSE, the Sensex, rose 1.21% on Tuesday and the exchange’s banking index, Bankex, rose just about 0.79%.
Mumbai: Reserve Bank of India (RBI) governor D. Subbarao said in an interview that the decision to cut the policy rate by 50 basis points (bps) was taken based on current data and is a strong signal to banks to cut loan and deposit rates. In future, all options are open, including further rate cuts or even a hike, depending on inflation-growth dynamics.
In many ways, the annual monetary policy for fiscal 2013, to be unveiled on Tuesday, will be one of the toughest for D. Subbarao since he took over as Reserve Bank of India (RBI) governor in September 2008 in the thick of a global credit crisis. Most economists expect the Indian central bank to cut its key rate, for the first time in three years.
We are a week away from the Reserve Bank of India’s (RBI) annual monetary policy for fiscal 2013. Two sets of critical data—factory output for February and inflation in March—will be released before the policy, and both have a bearing on its theme. At this point, what is crystal clear is that partial devolvement of the year’s first bond auction is not a happy omen, and the Indian central bank will have a challenging year ahead grappling with tight liquidity and a record government borrowing.