MUMBAI: India’s monetary policy makers may raise rates for the third time in the current cycle later this week, with the central bank seeking to maintain a delicate balance between meeting the liquidity needs of a nervous capital market and restraining inflation amid a steep fall in the rupee’s value.The Reserve Bank of India (RBI) is widely expected to raise the benchmark rate by a quarter percentage point when the policy is announced Friday, according to an ET poll conducted among 25 market participants. Indeed, the pace of consumer price rise has softened in India. But experts are factoring in the possibility of future price rises on account of a steep depreciation of the local currency and oil price shocks.“Notwithstanding the recent easing of CPI readings, it may be necessary to keep our rate structure in tune with the rising interest rates in the developed market space, including the US, and to the rising strength of the US dollar. Inaction from our central bank … [Read more...] about RBI likely to raise rate by 25 bps
Almost like praying how much raised
The slump in the macro economic environment exacerbated by COVID -19 pandemic led economic disruptions is all set to reverberate on the profitability and asset quality of scheduled commercial banks (SCBs), the savvy one of them have started building capital buffers before it gets too late.The Reserve Bank of India, in its Financial Stability Report, noted that the asset quality of the financial system could deteriorate sharply, caused by the lockdown-induced disruptions to both supply- and demand-side factors. The stress tests conducted indicate that the Gross Non Performing Asset Ratio (GNPA) ratio of all SCBs may increase from 8.5% in March 2020 to 12.5% by March 2021 under the baseline scenario. However, if the macroeconomic environment worsens further, the ratio may escalate to 14.7%. No lender will like to be caught off guard to the resultant slide in the capital adequacy ratio (CAR). To maintain the desired level of CAR, lenders will be dependent on the funds from two sources … [Read more...] about Will capital raising by banks provide the much needed cushion?
Market regulator Securities and Exchange Board of India has eased fundraising norms for corporates while they look at securing additional funding to deal with Covid19 disruption.The watchdog relaxed the condition of maintaining a gap of six months between two Qualified Institutional Placements to just two weeks. QIP is a way for listed companies to raise capital quickly since it has far fewer legal regulations to comply with, hence this route saves time for the issuers. In the last couple of months, financial institutions, and corporates have been scrambling to get more funds to navigate the Covid-19 crisis successfully. In May, private lender Kotak Mahindra Bank launched QIP to raise up to Rs 7,500 crore; Earlier this week investment banking firm JM Financial too raised Rs 770 crore through QIP route.The relaxation by the regulator means corporates or financial institutions wouldn’t have to wait for as long as six months to launch another QIP issuance; they can do it so after … [Read more...] about Will SEBI’s relaxation in QIP norms help CFOs raise more capital?
They ordered that a report should be filed in the court within two weeks providing details of the number of people arrested in the last 10 years for possessing illegal firearms, number of people to whom licences had been issued, number of cases booked and so on. … [Read more...] about Gun culture is slowly raising its ugly head in T.N., says HC
Abhishek was the first one to share the news of his father’s recovery. He wrote in another tweet, “I, Unfortunately due to some comorbidities remain Covid-19 positive and remain in hospital. Again, thank you all for your continued wishes and prayers for my family. Very humbled and indebted. I’ll beat this and come back healthier! Promise.” … [Read more...] about Bollywood prays for Abhishek Bachchan’s speedy recovery, welcomes Amitabh Bachchan home