Mumbai: Reserve Bank of India governor D. Subbarao said the central bank is as much worried about growth as inflation but the time is not ripe for a rate cut. A cut in banks’ cash reserve ratio (CRR), according to him, is balancing between slowing growth and rising inflation.
Bond yields rose and investors rushed to sell stocks, giving the thumbs down to the Reserve Bank of India (RBI) action—or the lack of it—in its second quarterly monetary policy review on Tuesday. Perhaps more disappointed than the markets was finance minister P. Chidambaram.
Mumbai: Jamie Dimon,chief executive officer of JPMorgan Chase and Co., the second-largest US bank by market value, is mightily impressed with the growth of Indian companies—their sophistication, improved governance and globalization. In an interview on Friday, Dimon said the bank’s India operations are almost as big as Italy and Spain combined and, in investment and corporate banking, India will be growing a lot faster than the developed nations.
It is for sure that the Reserve Bank of India (RBI) in its second quarterly policy on 30 October will pare its growth projection for the Indian economy. In its first quarterly policy in July, it had cut the growth projection for the current year to 6.5% from 7.
The World Gold Council (WGC), in partnership with India Post and Reliance Money Infrastructure Ltd, is celebrating this festive season by offering customers a 7% special discount on gold coins sold from post offices across India. Between 16 October and 31 December, customers can purchase 99.9% pure, Swiss-made 24-carat gold coins in denominations ranging from half a gram to 50g from 1,120 outlets.
“The Reserve Bank of India (RBI) is painfully aware of the pitfalls in allowing industrial houses to float commercial banks…Does that mean that we shouldn’t allow big houses to float banks? We will certainly take a chance…We will make sure that regulations are not subverted.” These words of RBI deputy governor Anand Sinha, at a seminar in Pune last week, make two points. One, RBI is extremely reluctant to allow industrial houses to set up banks.
Since mid-September when the government allowed foreign investment in retail and aviation, raised the price of diesel and capped the subsidized supply of cooking gas, the stock market has risen at least 5% and the local currency has appreciated close to 7%. Most brokerages have started revising their outlook on equities and quite a few foreign exchange dealers expect the rupee to end the year at around 50 to a dollar. If that happens, the currency’s rise will be a phenomenal 14.