In April 1991, about three months before then finance minister Manmohan Singh dismantled the licence raj, devalued the rupee to make exports competitive and ushered in a gradual lowering of tariffs even as India was forced to embrace economic liberalization, a deputy general manager of IFCI Ltd (then Industrial Finance Corp. of India Ltd)—the first development finance institution in independent India—was sent on deputation to set up its newly promoted rating agency Icra Ltd. The rating agency’s non-executive chairman D.
Indian corporations have been cheering the Reserve Bank of India’s (RBI) policy rate cut, the first reduction since May 2013. After a prolonged fight, the central bank has finally been able to contain inflation in Asia’s third-largest economy, and its 15 January action marks the beginning of a series of rate cuts that we may see. However, if companies think that getting cheap bank loans will be a cakewalk now, they are mistaken.
In the summer of 2012, Leo Puri went trekking to the Mount Everest Base Camp with his wife and teenage children. But climbing up to 5,364m in Nepal is perhaps not as tough as his current job: managing director of UTI Asset Management Co. Ltd (UTI AMC), a 12-year-old company with the soul of a 51-year old institution.
Reserve Bank of India (RBI) governor Raghuram Rajan’s Pongal gift, a quarter percentage point cut in the policy rate announced before market hours on Thursday, came as a surprise. Everyone knew a rate cut was coming, but no one expected it to happen so soon. Most analysts expected it in RBI’s February monetary policy review, about three weeks from now, while a few had thought it would happen even later—immediately after finance minister Arun Jaitley presents the Union budget in end-February.
Ramakant Jha, 69, managing director and group chief executive officer of Gujarat International Finance Tec-City Co. Ltd—popularly known as Gift City—is a happy man. In February last year, almost every banker and insurer in India attended a national summit on financial services, hosted by Gift City.
One: Every man and his dog knows that the interest rate in India will come down but the question is when and by how much? Currently, the Reserve Bank of India’s (RBI) policy rate is pegged at 8%. The rate cut can begin as early as in February when RBI announces its next bimonthly policy or as late as April when it unveils its monetary policy for the next fiscal year. Or, even in March, immediately after finance minister Arun Jaitley announces the Union budget.