RBI TIGHTEN CASH

"To a certain extent, the year-on-year rise in the bank borrowing numbers is a reflection of the merger between HDFC and HDFC Bank. But apart from that, it is clearly a reflection of the tightness in the liquidity and that was, to a certain extent, ...

I think the political outcome was suggesting that there is kind of a weak sentiment at the lower end of the income pyramid. And whether we accept it or not but India has seen a K-shaped consumption recovery post the pandemic. So, most of the high fr...

The shortfall of funds has pushed up the weighted average call rate (WACR), which represents banks' overnight cost of borrowing and functions as a determinant of other borrowing costs in the economy too. On Wednesday, the WACR closed at 6.75%, the s...

The Reserve Bank of India (RBI) has responded to tight liquidity conditions in the banking system by announcing a significant reduction in the government's treasury bill sales and introducing a new selection of bonds for the Centre's buyback operati...

Indian banks had a strong fiscal 2024 but face challenges in the current year due to regulatory changes impacting credit growth and net interest margins. Return ratios and riskier lending are also areas of concern as the market adapts.

Lenders may oppose the draft rules, which proposes provisioning of up to 5% from current 0.4%, due to concerns over rising interest rates and potential disruption to capital expenditure. Banks plan to lobby against the steep increase, arguing it cou...

Indian lenders are set to appeal against a central bank proposal to tighten rules for infrastructure project loans. The Indian Banks Association (IBA) is gathering inputs and will write to the central bank, opposing the imposition of higher provisio...

Despite RBI's unchanged rates, lenders raised deposit rates by 96 bps in FY24 due to rising credit demand. Liquidity tightened with incremental cash reserve ratio, leading to a multi-year high liquidity deficit.

RBI tightens supervision on retail lending, focusing on mortgage top-ups, algo-based credit models, and co-lending. It aims to manage risks in the financial system amid rapid credit expansion and global economic uncertainty. The RBI typically uses m...

Tata Sons net debt as of September last year was ₹15,200 crore, according to rating company Crisil. Tata Sons has substantial, stable income from group entities, including Tata Consultancy Services (TCS), through dividends and buybacks, which should...

Dipan Mehta advises keeping cash in the portfolio for strategic reasons, as investing during a correction ensures excellent returns in the next three years. Compliance and responsible lending are priority for NBFCs like IIFL and JM Financials. At 25...

Zoho is the first enterprise Saas player to get the payment aggregator nod from the RBI, joining the likes of Razorpay, Cashfree, Zomato and others.

Vijay Shekhar Sharma, India's startup king, faces a crisis as investors plunder Paytm's valuation due to regulatory action by the central bank, threatening significant business disruptions. Sharma aims to restore investor confidence and keep operati...

Apart from the deceleration in government spending, higher direct tax collections and a likely sharp rise in issuances of Treasury Bills by the Centre in FY24 were factors pushing up the government's cash balances, analysts said. The flow of governm...

"Shortage of funds will only get exaggerated in the last quarter (of the fiscal year), which ideally also sees the strongest credit growth," a senior treasury official at a private bank said. "We expect frequency of such repos to increase."

At ₹2.23 lakh crore as on December 15, the core liquidity has declined sharply from the peak surplus of ₹12 lakh crore from September to October of 2021 during the post-Covid phase in which the RBI had infused large amounts of funds into the banking...

Bond yields have spiked since Oct. 6, when the central bank said it will keep monetary policy restrictive and sell bonds to manage banking system liquidity. Bond prices move inversely to yields.

The acceleration in the issuance of CDs — which are short-term debt instruments used by banks to raise funds —— comes after the RBI imposed an incremental Cash Reserve Ratio (ICRR) of 10% on the growth in bank deposits from May 19 to July 28.

The Reserve Bank of India may look to tighten domestic rupee liquidity to quell inflationary pressures but will refrain from permanent cash withdrawal, several traders and analysts said ahead of Thursday's monetary policy review. The central bank is...