RBI
RBI liquidity injection and its impact on the bond market
The Reserve Bank of India (RBI) plans to inject Rs 1 lakh crore through OMOs and conduct a USD INR swap auction worth $10bn to address liquidity shortages. This strategic move aims to stabilize the economy by mitigating the liquidity crunch and balancing rupee volatility with maintaining market liquidity.
RBI's 14-day VRR auction for Rs 50,000 cr on March 7
This is likely to offset outflows that would happen after corporates pay their quarterly advance taxes by March 15, economists said. The VRR auction comes one day after the RBI announced additional liquidity measures comprising ₹1 lakh crore of open market operations (OMOs) and $10 billion of dollar-rupee buy-sell swaps.
RBI signals intent to ensure banking liquidity surplus, analysts say
The Indian central bank's bond purchases and FX swaps aim to maintain surplus liquidity in the banking system, helping banks pass on rate cuts to consumers and steepen the yield curve. These actions, following a period of liquidity deficit, ensure effective monetary policy transmission and support growth. The RBI's efforts are intended to stabilize rupee liquidity and aid market conditions.
Is RBI's CBDC initiative just another digital mirage?
Launched by RBI in 2022, CBDC aimed to reduce India's reliance on the dollar and counter cryptocurrencies. Despite lackluster adoption, fintech companies like CRED and MobiKwik are introducing CBDC wallets, envisioning potential to challenge UPI giants like PhonePe and Google Pay.
RBI's VRR auctions see muted response on easing liquidity
The Reserve Bank of India's recent auctions to inject funds into the banking system saw lukewarm interest due to improving liquidity conditions. Despite a persisting liquidity deficit, it has narrowed significantly in March. Market participants remain optimistic about further RBI measures to manage advance tax and GST outflows.
RBI's record $77.5 billion short positions may impact rupee liquidity and forex reserves
The Reserve Bank of India (RBI) holds a record $77.5 billion in net short dollar positions, which may need to be rolled over to avoid affecting rupee liquidity. Managing the maturity of these positions is crucial as any unwinding could impact foreign exchange reserves, currently at $640 billion, and the credibility of the spot reserve number.
Bank, NBFC stocks in focus on RBI’s plans to inject Rs 1.9 lakh cr liquidity
The RBI had previously conducted a $10 billion dollar-rupee swap on February 28 to inject long-term liquidity into the system, which saw strong demand.
RBI-fintech meet discusses expanding digital payments market, checking fraud
The meeting was attended by the new RBI Governor and senior officials of the apex bank. Senior executives from the payments, digital lending, and account aggregator startups represented the industry.
RBI governor holds meet with fintechs and others, says there is need for compliance by entities new to regulatory space
RBI Governor and Deputy Governors engaged with Payment System Operators and FinTechs, highlighting their role in India's financial growth. They stressed the importance of responsible innovation and regulatory compliance. Feedback on the payment and fintech ecosystem was shared during the session, and RBI reaffirmed its commitment to consultative interactions with industry participants.
Study abroad turns into stash cash abroad; RBI takes note
The RBI is scrutinizing the misuse of a 2003 rule allowing Indian students abroad to be treated as NRIs, which enables large overseas fund transfers. This rule, meant to aid students working abroad, is now exploited by wealthy families. The RBI may review the rule to differentiate genuine long-term students from those misusing it for financial benefits.
RBI announces Rs 1 lakh crore bond purchases, $10 billion swap to address liquidity deficit
The Reserve Bank of India announced measures to inject ₹1 lakh crore into the banking system and conduct a dollar/rupee swap auction of $10 billion. These steps aim to address the liquidity deficit and ensure the smooth transmission of lower policy rates amid expected tax outflows.
RBI allows IndusInd CEO one year extension instead of usual three
The Reserve Bank of India has approved a one-year extension for Sumant Kathpalia as CEO of IndusInd Bank, extending his term until March 23, 2026. Kathpalia, who has over 37 years of experience in the banking sector, has overseen significant growth despite challenges in the microfinance portfolio.
India set to overcome worst cash crunch in years on RBI steps
India is addressing one of its worst liquidity deficits through aggressive steps by the Reserve Bank of India, which has injected about $68 billion into the financial system since late January. These efforts are expected to create a liquidity surplus by the end of March, aiding better transmission of interest-rate cuts and supporting economic growth.
IMF suggests corporate bond inclusion in RBI’s crisis-related liquidity toolkit
IMF recommendations: The IMF recommended that the RBI expand its crisis-time liquidity measures by accepting corporate bonds as collateral. This move could enhance liquidity support beyond government securities, benefiting non-bank financial institutions and strengthening financial stability during periods of market distress.
RBI directs large NBFCs to stop new lines of credit and renewals
The Reserve Bank of India has directed large finance companies to stop renewing lines of credit for businesses due to concerns over disguised borrower stress. This credit facility allows flexible fund withdrawals and delayed principal repayment, making NBFCs less capable of gauging borrowers' real-time cash flows.
RBI to conduct OMOs worth Rs 1 lakh crore, $10 billion forex swap auction to manage liquidity conditions
The Reserve Bank of India will conduct two tranches of open market operations and a dollar/rupee buy/sell swap to infuse liquidity into the banking system. The operations will occur on March 12, 18, and 24, addressing the significant deterioration in banking liquidity conditions observed in recent months.
RBI's $15-billion dollar-rupee swaps helping Indian companies raise cheaper overseas loans
The Mumbai Interbank Forward Offer Rate (MIFOR), which gauges currency risk when Indian companies bring dollar funds into India, has fallen over the past month after the RBI bought dollars from banks with an agreement to sell them back three years later, indicating the central bank is ready to lend dollars at a cheaper rate to the market.
RBI may make it tougher for you to get gold loans from banks
Gold Loans: India's central bank plans to enforce stricter underwriting processes for gold loans, ensuring ethical business practices and financial stability. This includes enhanced background checks on borrowers and monitoring the end-use of funds to prevent irregularities found in recent audits.
Muthoot Finance, Manppuram Finance shares in focus as RBI asks to tighten gold loans process
Since September 2024, gold loans from banks have risen by 50%, significantly outpacing the growth of overall loans. This increase is partly due to stricter regulations on unsecured lending. In India, the world's second-largest gold consumer, gold is traditionally bought for festivals and weddings, and with prices at record highs, gold loans have become an increasingly popular option.
RBI says 98.18% of Rs 2,000 notes returned
As of February 28, 2025, 98.18% of Rs 2000 banknotes have been returned to the banking system, leaving only Rs 6,471 crore in public hands. Deposit and exchange facilities were available at bank branches until October 7, 2023, and continue at RBI issue offices and via India Post.
RBI will have to cut CRR to ease banking liquidity; Mahakumbh leads to significant cash withdrawals: SBI Report
The Reserve Bank of India may need to cut the Cash Reserve Ratio to alleviate the current liquidity pressure in the banking sector, according to an SBI research report. The report suggests using CRR as a regulatory intervention tool rather than relying on it solely for liquidity. A CRR cut would help stabilize liquidity and ensure smoother financial operations.
Bombay HC irked by copy-paste bank orders declaring accounts fraud, asks Anil Ambani to approach RBI
The Bombay High Court criticized banks for the careless manner in which they declare accounts as 'fraud' or 'defaulter'. It advised Anil Ambani to approach the RBI against such an order by Union Bank of India, highlighting the need for strict adherence to RBI guidelines.
A triple attack on rupee
The intervention in the forex market by the RBI drained liquidity from the banking system which has been in deficit since mid-December 2024. RBI took various measures to support liquidity, from a 50 bps cut in CRR to 4% in its December MPC policy, to long tenured variable rate repo auctions and dollar-rupee buy-sell swap.
India's forex reserves down by $1.7 billion at $638.69 billion as of February 28
India's forex reserves stood at $638.69 billion by February 28, 2025, experiencing a decrease of $1.7 billion. The Reserve Bank of India intervenes in the market to maintain stable conditions and control excessive volatility without targeting specific levels.
RBI appoints Dr Ajit Ratnakar Joshi as new Executive Director
Dr. Ajit Ratnakar Joshi has been promoted to Executive Director of the Reserve Bank of India, starting from March 3, 2025. He will oversee the Department of Statistics and Information Management and the Financial Stability Department. Dr. Joshi brings over three decades of experience and holds advanced degrees in statistics and monetary economics, along with several other qualifications.
RBI imposes Rs 76.6 lakh penalty on 4 entities
The Reserve Bank of India imposed penalties totaling Rs 76.6 lakh on four non-banking financial companies for non-compliance with its peer-to-peer lending platform regulations. Fairassets Technologies India, Bridge Fintech Solutions, Rang De P2P Financial Services, and Visionary Financepeer were each penalized based on regulatory deficiencies.
Small-caps may see further correction; focus on lending financials, avoid global cyclicals: Rohit Seksaria
RBI is pumping in sufficient amount of liquidity. So, both these factors should help in the growth scenario going forward. On top of that, as you mentioned, the crude prices have corrected sharply.
RBI buys bonds worth ₹40,000 cr in week to feb 21
The Reserve Bank of India bought bonds worth ₹40,000 crore through open market operations to increase liquidity in the banking system. This brings their total bond purchases in February to ₹80,000 crore. Market participants anticipate further liquidity injections through similar operations or repo auctions. RBI had also made significant bond purchases in January.
Saturday bank holiday: Are banks open or closed today on March 8, 2025?
Banks are open on the first, third, and fifth Saturdays of the month unless specified as a holiday by the RBI. Banks remain closed on all second and fourth Saturdays and all Sundays as per the RBI mandate.
Rupee settles stronger at 87.37 as dollar weakens
The Indian rupee closed slightly stronger at 87.37 per US dollar, benefiting from a weaker dollar index. Traders expect RBI intervention if the currency nears 88/$1.
India bond yields seen little changed with eyes on US data
Indian government bond yields are expected to remain largely unchanged on Friday as market participants await U.S. economic data. The data may influence the Federal Reserve's interest rate decisions. Local bond yields could see an increase due to the RBI's decision on bond purchases. Broad-based movement is likely next week after the U.S. jobs data release.
Anil Ambani case: When does a loan account turn fraudulent?
The Bombay High Court raised concerns over the arbitrary process by banks declaring loan accounts as fraudulent without following proper RBI guidelines. Industrialist Anil Ambani was advised to lodge a complaint with the RBI after the Union Bank of India tagged his account as fraud without a prior hearing.
Where to invest in a falling market? HDFC Bank & Cholamandalam Investment top buy for 1 year time horizon
The RBI's decision to restore risk weights on bank loans to NBFCs and MFIs improves capital efficiency and enhances credit flow, supporting economic expansion. This regulatory measure lowers capital requirements, aiding banks and NBFCs in stabilizing their capital adequacy and boosting lending capacity.
Rupee slips to 87.12 despite fall in dollar index
Rupee forward premiums have dropped after the Reserve Bank of India (RBI) announced a raft of measures, including a dollar rupee buy-sell swap, to boost domestic liquidity, likely stoking dollar demand Thursday.
RBI imposes penalty on The Hongkong and Shanghai Banking Corporation
The RBI has imposed penalties on The Hongkong and Shanghai Banking Corporation Limited (Rs 66.6 lakh) and IIFL Samasta Finance Limited (Rs 33.1 lakh) for non-compliance with certain regulations, including 'Know Your Customer' and 'Interest Rates on Deposits'. The penalties address deficiencies in regulatory compliance and are not judgments on the validity of transactions or agreements with customers.
RBI's microfinance move: Tightening the reins while easing the credit squeeze
RBI has relaxed risk weights in banks' microfinance lending, indicating confidence in the effectiveness of earlier restrictions. With non-performing assets in microfinance at an all-time high, the move underscores the need to balance credit supply and lending discipline. This adjustment aims to lower defaults while supporting rural consumption and growth revival.
After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh
After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut.
$-Re swap gets strong demand, weakens rupee
The Reserve Bank of India's dollar-rupee buy-sell swap saw strong demand but resulted in a lower-than-expected cut-off premium, leading to further rupee depreciation. The $10 billion swap, oversubscribed by $16.23 billion, will reverse in March 2028. Market participants expect continued weakness in the rupee as the RBI focuses on meeting the credit market's rupee liquidity needs.
Digital lenders, microfinance companies urge RBI to set interest rate formula for small loans
Several digital lenders and microfinance companies have approached the Reserve Bank of India to introduce a formula for calculating interest rates on small-ticket loans. They argue that a regulatory formula would ensure fair pricing, prevent business disruptions, and reduce the risk of regulatory actions. The industry seeks clarity and a framework modelled after practices in other countries.
Indian bonds consolidate as 10-year bond yield tops 6.75%
Indian government bond yields consolidated after the 10-year yield hit a six-week high, with cautious sentiment amid heavy debt supply. States sold bonds with higher cutoff yields, indicating weak demand. Traders expect states to raise around 1.35 trillion rupees by March-end, while demand for longer-duration bonds has eased due to uncertainty around RBI bond purchases.
Bombay HC refuses to direct transfer of RBI bonds to mom & wife of man who has taken sanyas
The Bombay High Court declined to order the transfer of RBI bonds to the mother and wife of a man who became a Jain sadhu, ruling that disputed claims should be settled through civil proceedings. The petitioners argued that the man’s renunciation amounted to civil death, but the court sided with HDFC Bank, which refused the transfer based on RBI guidelines, citing lack of conclusive evidence regarding the man's renunciation and succession.
Growth in personal loans slows down to 14.2% in Jan: RBI data
Personal loan growth slowed to 14.2% by January 24, 2025, down from 18.2% a year earlier, due to reduced vehicle loans and credit card outstanding, according to RBI data. Non-food bank credit increased 12.5%, marking a three-month high, while credit to agriculture grew by 12.2%. Industry advances rose by 8.2%, driven by sectors like petroleum and chemicals.
Banking Liquidity will come into a strong surplus by March end: UBI report
India's banking sector liquidity is expected to shift to a strong surplus by March 2025 due to the Reserve Bank of India's Rs 1.9 lakh crore liquidity measures. Short-term challenges like GST outflows may tighten conditions temporarily, but overall improvement is anticipated by the financial year's end.
RBI’s policy shift and global trade tensions drive Indian Rupee's depreciation against the US dollar: UBI Report
The Reserve Bank of India's policy changes under Governor Sanjay Malhotra have led to a 1.8% depreciation of the Indian currency against the US Dollar in early 2025. Contributing factors include the trade war risks and changes in US trade policies under President Donald Trump.
Nifty headed for W-shaped reversal, expect selling pressure near 23K: Anand James
Anand James, Chief Market Strategist at Geojit Financial Services, predicts a W-shaped reversal in Nifty, with support at 22,000 and potential resistance near 23,000. He discusses the underperformance of Nifty Bank despite RBI's liquidity support, the fall in Gensol Engineering shares, and the small-cap index's performance. James recommends buying EPL with a target price of Rs 225.
India bond yields flat before US jobs data, 10-year yield crawls up
Indian government bond yields remained mostly flat, with the 10-year bond yield rising slightly as RBI did not include it in next week's bond purchase. Investors are awaiting U.S. economic data to assess the Federal Reserve's interest rate trajectory. The RBI plans significant bond purchases and liquidity measures to maintain banking system surplus.
Bandhan Bank, IndusInd Bank, NBFC stocks rally up to 8% as RBI lowers risk weights
Shares of IndusInd Bank, Bandhan Bank, and NBFCs surged up to 8% after the RBI eased risk-weight norms on loans to NBFCs, effective April 1. The move, reversing a tightening measure from November 2023, is seen as a positive for the sector, especially for lenders with microfinance exposure. Analysts expect further adjustments in the RBI's risk-weight framework.
India's economy deep in ' Modi-made crisis' : Cong on rising gold loans
The Congress has raised concerns over the dramatic increase in gold loans, attributing the economic crisis to the Modi government's mismanagement. RBI data reveals a significant 71.3% rise in gold loans as distress lending peaks, adversely affecting women who constitute a large percentage of gold loan borrowers.
Sanjay H Parekh optimistic about earnings revival, foresees strong market recovery in coming months
If we take risk premium and ten year at 11.7, implied growth is 10% for earnings growth and yet it comes at 3.35 times price-to-book. On 26, we are at 2.9 times price-to-book. So, historical five-year average also you take, we are at the lower end on price earning.
Rupee logs biggest 1-day rise in a month to hit 86.95/$
Likely intervention by the Reserve Bank of India (RBI) also helped the currency gain Wednesday, traders said, as the equity indices snapped a 10-day losing streak to log the biggest gains in a month.
Largecaps to lead market recovery, smallcaps still overvalued: Sandip Sabharwal
So, the first phase of the rally could be led by largecaps and then stabilise and then small and midcaps can join in. So, on the largecap side, I would think that companies and the financial, the larger banks like Axis, ICICI, etc, offer value.
RBI eases lending rules to revive credit growth as bank lending slows and consumption weakens
RBI is gradually easing banking credit by lowering CRR, adjusting repo rates, and reducing risk weights on bank lending to non-banks and microlenders. These steps aim to revive consumption and credit growth, which have slowed due to reduced bank exposure to non-banks and high borrowing costs.
Rohit Srivastava optimistic on Nifty, says market has reached bottom and ready for upside
The Nifty index shows signs of a strong recovery after a long losing streak, supported by low sell volumes and oversold conditions. Market expectations are bullish with crucial resistance levels around 22,500, while Nifty Bank outperforms, indicating readiness to break its downward trend.
NBFCs surge post RBI relief, brokerage outlooks improve
The brokerage described RBI's decision to ease bank lending to finance companies as 'Dene Wala Jab Bhi Deta...Deta Chappar Phaad Ke" (God gives abundantly whenever he gives). It was referring to RBI's move to ease the sector's woes. CLSA said Bandhan Bank is the biggest beneficiary of the step.
Banks likely to go easy on funding to NBFCs
Indian banks are unlikely to resume significant lending to non-bank lenders and microlenders immediately, despite recent regulatory relaxations by the Reserve Bank. Asset quality is a major concern, with non-performing assets in the microfinance sector reaching an all-time high of ₹50,000 crore as of December last year.
House price index rises 3.1 pc in Q3: RBI data
The All-India House Price Index (HPI) saw a 3.1 per cent rise in Q3 2024-25, a slowdown from previous quarters, as reported by the Reserve Bank of India. Mumbai, Bengaluru, and other major cities recorded varied annual growth rates, with Kolkata leading at 8.1 per cent and Kanpur seeing minimal change.
Credit growth slows, still outpaces deposits: RBI data
Credit growth continues to surpass deposit growth, albeit both have slowed, with bank deposits at Rs 222 lakh crore and credit at Rs 179.9 lakh crore as of February 21. Slower deposit growth and tightened lending norms have influenced this trend. Retail loans and NBFC lending have declined, prompting credit rating firms to revise credit growth estimates downward.
Rajeev Agrawal on tariff uncertainty and its impact on global market
The markets are very nervous precisely because there is a lot of uncertainty and as we all know markets do not like uncertainty. And the new administration has provided plenty of it. So, what do we do in such situations?
ETMarkets Smart Talk | Over 60% of the stocks are available at 25-50% discount highs: Value buys or traps? Manish Goel explains
Even though FIIs have pulled out a record amount in Rs 2.1 trillion since October 2024, DIIs have stepped in with even higher investments (Rs 3.2 trillion), keeping the market from falling sharply.
Rupee strengthens following RBI's firm defence of 87.40-87.50 territory
The Indian rupee appreciated against the US dollar, supported by broad-based interbank dollar sales and the Reserve Bank of India's defense of certain levels. The dollar index hovered near a three-month low, influenced by concerns over the US economy and new trade tariffs. The rupee has declined nearly 2% this year amid persistent outflows from local stocks.
Nifty50 appears reasonable, but stock selection is key: Sanjeev Prasad
Sanjeev Prasad discusses the current market, highlighting the lack of substantial value across large-cap, mid-cap, and small-cap indices despite their correction. He points out potential opportunities in the banking sector due to stabilization and growth prospects while cautioning against highly overvalued narrative stocks.
Rs 17,000 crore IPO! Tata Capital’s D-St debut plan now hinges on NCLT nod for merger with Tata Motors Fin
Tata Capital has plans to raise USD 2 billion through an IPO with expectations of a valuation around USD 11 billion. The move is conditional on the final approval of Tata Motors Finance's merger by NCLT, anticipated to complete by FY25 end. The offering includes fresh issues and sales by existing shareholders.
Muthoot Finance shares rise 3% after RBI approves opening 115 branches
Muthoot Finance shares rose 2.6% after receiving RBI approval to open 115 new branches. The gold loan-focused NBFC reported a 26% YoY growth in net profit for Q3, with revenue from operations surging 36%. The company's highest-ever consolidated loan assets under management reached Rs 1.11 lakh crore as of December 2024.
FD interest rate up to 9%: Check highest interest rate and one-year interest rate of fixed deposits of these banks
Many small finance banks are offering attractive fixed deposit interest rates, with Unity Small Finance Bank and NorthEast Small Finance Bank providing the highest at 9% for specific tenures. The table lists various banks and their respective rates.
I-Sec upgrades City Union Bank to Buy, target price Rs 200: ICICI Securities
ICICI Securities has upgraded City Union Bank to a BUY with a target price of Rs 200. The bank reported a 2.82% increase in standalone total income for the quarter ending December 2024. Upgrades are based on healthy Q3FY25 numbers and positive growth outlook. The stock currently trades at its lowest valuation in the last three years.
Bajaj Finance shares rally 3% as RBI eases lending norms for NBFCs
Bajaj Finance share price: The central bank's decision to reduce risk weights on loans to NBFCs from 125% to 100%, effective April 1, is expected to enhance credit flow to the sector. This move reverses a measure introduced in November 2023, which had raised capital requirements for banks lending to NBFCs, thereby limiting credit availability.
Founders hit start again; Like father, like son
Happy Thursday! More than a dozen entrepreneurs left their startups over the past year to venture out on their own a second time. This and more in today’s ETtech Morning Dispatch.
India's economy set for Q4FY25 boost with increased govt. spending and capex: UBI report
India's economy is projected to improve in Q4FY25, driven by increased government spending, capital expenditure, and higher consumption due to events like Maha-Kumbh and the wedding season. The RBI has supported this growth with rate cuts and liquidity provisions, aiming for a 7.6% GDP growth in Q4FY25.
Appointment of new Sebi chairman: A key moment for financial services regulation in India
Shri Tuhin Kanta Pandey has been appointed as the new SEBI Chairman, praised for his expertise and background in both regulation and public asset management. His appointment follows the 2025 Union Budget, which emphasizes deregulation and trust-based governance, aiming to enhance investment efficiency and foster business growth. This strategic move promises improved coordination between financial regulators.
Neeraj Dewan recommends patience, advises investors to add on market dips
The core portfolio should stay because there is definitely a lot of fear on the street. About five-six months back there was a lot of greed, but now that has converted into so much fear and no one is really talking about buying anything. Everyone is talking about what to sell. Now, you even asking me a question about the core portfolio and whether one should sell that also and sit on the side.
Bear grip a ‘Realty’ as stocks fall up to 40% in 6 months. Can the sector make a bullish case to investors?
Despite strong earnings and a resilient residential upcycle, realty stocks remain under pressure, with Nifty Realty down 29% from its peak. FIIs continue to sell, and experts remain cautious on recovery. Regulatory risks, high interest rates, and unsold inventory add concerns. However, long-term investors may find opportunities as the sector stabilizes.
IMF highlights structural reforms as key to strengthening India’s growth amid global challenges
India can boost its growth by advancing structural reforms despite external challenges, says IMF's Harald Finger. Key priorities include labor market reform, reducing trade restrictions, and enhancing public investment. Furthermore, India's robust fundamentals support greater exchange rate flexibility, while GST rationalization and strengthening the financial sector's resilience are also crucial.
Nomura’s Aurodeep Nandi predicts sub-6% growth for Q3 FY25, citing mixed economic indicators
Nomura's Aurodeep Nandi forecasts sub-6% GDP growth for Q3 FY25 due to mixed consumption, tepid industrial production, and negative net export impact. Public capex shows a sharp increase in December. RBI is expected to cut rates by 75 basis points this year.
Higher-rated NBFCs likely to gain more from RBI relief
Easier access to funds and lower costs could mean NBFCs could save 25-50 basis points on bank loans due to lower banking risk weightages for the sector. One basis point is 0.01 percentage point.
Falling global crude to soften inflation blow from weak rupee
India's central bank may have room for monetary easing due to the faster decline in global crude oil prices counterbalancing the rupee's fall against the US dollar. The falling price of Brent crude mitigates imported inflation risks, potentially easing consumer prices and supporting further rate cuts by monetary authorities.
Declining crude prices adds elbow room for rate cuts amidst weakening rupee
India’s central bank may have room for monetary easing due to falling global crude prices offsetting risks from a weaker rupee. Despite concerns over imported inflation affecting the consumer price index, easing energy prices could help lower import costs, thereby supporting further rate reductions.
India's forex reserves up $4.7 billion at $640.47 billion as of February 21
As of February 21, 2025, India's foreign exchange reserves increased by $4.7 billion, reaching $640.47 billion, according to the Reserve Bank of India. The central bank intervenes in the forex market to maintain orderly conditions and prevent excessive volatility in the exchange rate.
Calls India the best market, yet cuts exposure. What’s Christopher Wood seeing?
Christopher Wood, of Jefferies, remains bullish on India's long-term growth despite recent tactical portfolio adjustments due to high valuations and liquidity tightening. He highlights factors such as increased equity supply and tighter monetary policies contributing to the recent market correction.
Smallcap correction will create new opportunities in market: Jigar Mistry
Jigar Mistry of Buoyant Capital elaborates on the post-COVID market trends, attributing retail investors’ unprecedented wealth to the volatility. He explains the shift in government spending from capex to consumption and its impact on various sectors. Mistry reveals Buoyant Capital’s strategic portfolio adjustments, highlighting a preference for larger cap stocks and significant investments in the banking and insurance sectors.
RBI is a firm but fair regulator, has been cautioning about over-leverage for a while: Rajat Deshpande, FinBox
Launched in 2017, the new-age embedded finance platform offers a solution to organisations so that they can add lending (business, personal, bullet loans, and credit line products) opportunities on top of their existing offerings.
India Post Bank is gearing up to go public in a year
IPPB was set up under the Department of Post, with 100% equity owned by the government. The department has now begun discussing how much equity would the Centre divest in the payments bank, people aware of the matter said.
Special FD interest rate up to 8.05%: Invest in these 5 special FDs before March 31, 2025
Several banks, including SBI, Indian Bank, and IDBI Bank, are offering special fixed deposit schemes with high-interest rates with deadlines in March Therefore, before the special FD deadline, investors should think about investing in these schemes if they want to get better returns.
RBI increases mortgage, loan ceilings for urban co-operative banks
The Reserve Bank of India (RBI) has raised the loan limits for urban co-operative banks (UCBs) to 0.40% of their Tier I capital and Rs 3 crore per borrower. The RBI also increased the exposure limits for residential mortgages to 25% of total loans and extended compliance timelines for security receipts valuation to 2027-28.
Rupee hosts biggest party in two years on dollar decline
The dollar index, which maps the strength of the dollar relative to a basket of currencies, slid to 103.6. It was just shy of the 110 mark as recently as late January, with safe-haven demand roiling equities across the Emerging Markets, and prompting the most protracted slide in India's benchmark stock gauges in nearly three decades.
Sebi permits all NBFCs, HFCs to invest in security receipts by Asset Reconstruction Cos
Markets regulator Sebi has allowed all non-banking financial companies (NBFC), including housing finance companies, to invest in security receipts issued by Asset Reconstruction Companies (ARCs), a move aimed at encouraging investments in the bad loans space.
Robust demand propels India's services sector growth in February, PMI shows
India's services sector growth accelerated in February due to strong demand and a positive business outlook, leading to significant hiring. The HSBC services PMI rose to 59.0 from January's 56.5. Global demand boosted output growth, and employment expanded. Despite a four-month low in cost price inflation, charge inflation increased. Composite PMI also rose, reflecting overall economic resilience.
Betting on the revival of an underperforming sector
While recently reviewing my investments and exploring new equity opportunities in the current bear market, I came across news about the Reserve Bank of India (RBI) imposing restrictions on New India Cooperative Bank.
Homebuyers taken to ransom: SC wants probe into builder-bank mess
The Supreme Court has called for a CBI probe into the alleged collusion between builders and banks, impacting homebuyers in NCR. The bench criticized the failure to provide project details and compliance information, pushing for a comprehensive investigation involving all banks.
HDFC Bank cuts lending rate by 5 bps on this tenure; check details
HDFC Bank has decreased its Marginal Cost of Funds-based Lending rate (MCLR) on one loan tenure by 5 basis points (bps). After the revision, HDFC Bank MCLR will now range between 9.20% and 9.45%. The revised rates are applicable from March 7, 2025 onwards.
Public sector banks eye fintech tie-ups; Blinkit, Zepto raise commissions
Happy Friday! Public sector banks are eyeing collaborations with fintech startups to boost lending to MSMEs. This and more in today’s ETtech Morning Dispatch.
New India Cooperative Bank vault had capacity for Rs 10 cr but book showed Rs 122 cr: EOW
The Mumbai Police's Economic Offences Wing (EOW) is investigating a Rs 122 crore embezzlement case involving New India Cooperative Bank. A complaint alleges that former executives, including the bank's ex-CEO and general manager, conspired to misappropriate funds. The RBI has appointed an administrator following the discovery.
MMRCL plans to monetise land parcels along Mumbai metro 3 corridor
Mumbai Metro Rail Corporation Limited (MMRCL) plans to monetise land parcels in Byculla, Marol, Mahim, and Dharavi to support metro expansion through joint ventures, PPPs, or outright sales. Key parcels include Byculla's Jacob Circle, Mahim’s Nayanagar, a site above Marol Naka Metro Station, and land near Dharavi Metro Station.
Mumbai: ED conducts searches in Rs 4,500-cr worth investment 'fraud' case
The Enforcement Directorate conducted raids on Pancard Clubs Limited for allegedly duping over 50 lakh investors of Rs 4,500 crore through fraudulent investment schemes. Documents were seized relating to overseas assets and attempts to dispose of them. The case involves violations of SEBI and RBI norms, with charges under the Prevention of Money Laundering Act.
These PNB bank account holders won’t be able to operate savings accounts if they don’t do this soon
Punjab National Bank (PNB) has urged select account holders to update their "Know Your Customer" (KYC) information, in accordance with RBI norms. It asked them to complete the KYC before the specified date to ensure seamless account operations.
India's Q3 GDP data confirms stable but slowing economic growth in FY2024-25
GDP data for Q3 shows stable but slowing economic performance in 2024-25. After a manufacturing slump, growth rebounded in October-December. Consumption growth revived, while investment remained sedate. Exports performed well despite global trade issues. Domestic consumption is key to mitigating external uncertainties, with rural demand dependent on climate interventions.
Is the worst over for NBFC shares?
RBI Tuesday after market trading hours cut the risk weight for banks on loans to NBFCs from 125% to 100% depending on the rating of the finance company
Ghar wapsi: Indian startups returning home in droves
Indian startups like Razorpay, Udaan, and Meesho are shifting their headquarters back to India due to improved IPO opportunities, easier compliance, and domestic funding options. The transition, although complex, is supported by India's maturing capital markets and regulatory reforms, enhancing their valuations and growth prospects.
Will relief rally power Nifty above 23,000 this week? 6 key triggers to track
The Indian equity market rebounded last week, with the Nifty rising nearly 2%, driven by positive macroeconomic indicators, a fall in the dollar index, and RBI liquidity support. Key factors to watch include FII activity, dollar index movements, bond yields, crude oil prices, macroeconomic data, and technical indicators, which will guide market sentiment in the coming week.
RBI lowers risk weight on bank finance to NBFC, microfinance loans
The Reserve Bank of India partially reverses tighter rules for small borrower and non-bank lender loans, reducing risk weights for consumer microfinance loans. This adjustment follows a deferral of new capital and liquidity proposals by the central bank, coinciding with a change in leadership as Sanjay Malhotra assumes the role of governor.
