India’s retail inflation rose to 5% year-on-year in October, from 4.4% in September, slightly higher than market expectations, riding on higher food inflation. The so-called core inflation, or non-food, non-oil, manufacturing inflation, rose 4.
There had not been too many occasions in the past when Prime Minister Narendra Modi hawked a financial instrument to raise money overseas. Modi has done so during his recent UK visit by announcing that India’s railway network would soon issue masala bonds in London to raise funds for its expansion. Apart from the Indian Railway Finance Corp.
Net interest income, the main source of revenue, rose modestly in the September quarter for listed Indian banks. It rose 3.54% from a year earlier for 14 publicly traded banks that are outside state control and 3.
Reserve Bank of India (RBI) deputy governor S.S. Mundra’s recent comment in Delhi that the central bank will give more licences to new banks has sparked off speculation on how many more banks India can have.
Those who feel upset looking at the vacant top positions at state-owned banks, and wonder why a well-meaning government takes so long to fill the positions of chairmen, managing directors and chief executive officers, may find comfort from the fact that the government does not discriminate between commercial banks and the central bank of the nation. While all attention is on the formation of the monetary policy committee (MPC), which will play a critical role in a new regime when Reserve Bank of India (RBI) is targeting inflation, nobody has probably noticed that the RBI board has turned into a skeleton with the terms of most of its members having ended in the past three months. RBI’s affairs are governed by a central board of directors appointed by the government.