In April 2011, after he took over as chairman of State Bank of India (SBI), Pratip Chaudhuri went out of his way to make peace with the Reserve Bank of India (RBI), junking a teaser loan scheme aggressively promoted by his predecessor O.P. Bhatt.
The Reserve Bank of India’s (RBI’s) late evening “assurance on liquidity management” betrays nothing but nervousness of the Indian central bank with the rise in bond yields that will push up the borrowing cost of the government. The yield on 10-year benchmark government paper, which was hovering around 8.2% before the 20 September mid-quarter monetary policy, rose to 8.
Mumbai: K.V. Kamath , chairman of India’s largest private sector bank ICICI Bank Ltd, does not care much about the Reserve Bank of India’s (RBI’s) move to hike the key repurchase rate.
The market seems to be developing a love-hate relationship with new Reserve Bank of India (RBI) governor Raghuram Rajan. On 4 September, the day Rajan took over, BSE Ltd’s benchmark equity index Sensex greeted him with a 1.83% rise.
The surprise element in Reserve Bank of India (RBI) governor Raghuram Rajan’s first monetary policy has been a hike in the repurchase, or repo, rate by a quarter percentage point to 7.5%. This, however, largely remains a signal as the real effective policy rate at this point is the marginal standing facility (MSF), rate which has been brought down by three quarters of a percentage point to 9.
Don’t be surprised if Reserve Bank of India (RBI) governor Raghuram Rajan kicks off the process of unwinding of some of the July measures on Friday at the central bank’s mid-quarter review of monetary policy. The US Federal Reserve deciding to hold off tapering of the stimulus for the time being gives him the leeway to do that. Rajan had postponed the date of the policy review by a couple of days to be able to take stock of the Fed’s decision before formulating India’s monetary policy.
In the past few years, former Reserve Bank of India (RBI) governor D. Subbarao repeatedly urged the government to address structural issues in the Indian economy. He was not the first one to do so.
Mumbai: Hours after Lehman Brothers filed for Chapter 11 bankruptcy protection in September 2008, the Reserve Bank of India (RBI) directed the Indian arm of the US investment bank to close all transactions with Indian banks within a day. A couple of weeks later, RBI asked banks to furnish data on their exposure to other troubled global financial entities, including Wachovia Corp., Fortis NV, American International Group Inc.