In early March, addressing the Fixed Income Money Market and Derivatives Association of India-Primary Dealers Association of India annual conference, Reserve Bank of India (RBI) governor Raghuram Rajan said the central bank’s policy rate was appropriately set. Instead of administering shock therapy to a weak economy, RBI would prefer to disinflate over time, while being prepared to do all that was necessary if the economy deviated from the projected inflation path, he said. If one reads this in conjunction with the last policy statement which said, “The extent and direction of further policy steps will be data dependent, though if the disinflationary process evolves according to this baseline projection, further policy tightening in the near term is not anticipated at this juncture”, one can presume that Rajan will opt for status quo when he announces the monetary policy on 1 April.
Saddled with a pile of bad assets, the nation’s largest lender State Bank of India (SBI) is auctioning around Rs.4,000 crore of its Rs.67,799 crore stressed loans to asset reconstruction companies (ARCs).
The Reserve Bank of India (RBI) seems ready to issue in-principle licences to a third set of new banks in the world’s tenth largest economy after it hears from the Election Commission (EC). Depending on the EC’s stance, it can happen as early as next week or post the April-May general election. In other words, the ball is now in the EC’s court.
The banking community is closely watching the Bharatiya Janata Party’s (BJP’s) stance on privatization. A conservative estimate of the capital requirement of India’s banks is around Rs.2.
The February wholesale price inflation (WPI) figure has dropped to 4.68% from 5.05% in January.
The Supreme Court on Friday rejected the Sahara group’s proposal to repay money to its bond investors, and directed it to submit a fresh plan by 11 March. It extended the custody of Subrata Roy, chairman of Sahara India Pariwar, a largely unlisted business conglomerate with 4,799 establishments in its fold and at least Rs.1.
Mumbai: On 20 June 2008, three days after India’s banking regulator released its directions for shutting down Sahara India Finance Corp. Ltd (SIFCL), Sahara India Pariwar’s residuary non-banking financial company (RNBC), the Mayawati government in Uttar Pradesh demolished one wall of the high profile Sahara Shaher at Gomti Nagar—the fortified, 360-acre, self-supporting township in Lucknow that houses Pariwar’s headquarters—to make way for a road. The demolition drive didn’t last beyond a few hours.
For the past one year, the State Bank of India (SBI) has been showing a drop in both operating as well as net profits in every quarter and a rise in bad assets. Its gross non-performing assets (NPAs) rose to 5.73% of total loans in the December quarter, up from 4.