Thirdly, banks' funding requirements are dynamic with periods when a particular bank's funding needs are high and it will readily pay higher than market rates, and vice versa. The new rules will impede the ability of banks to reflect such changes in funding costs of their lending rates as these will be linked to an external benchmark. … [Read more...] about RBI external benchmark for bank loans credit negative: Moody’s
Central bank net banking
Bonds have much more money invested in them worldwide than in equities, but don’t get the column inches they deserve. That’s because bond returns don’t appear as spectacular as those in stocks, but in stressful times, they are good bets - more so if state backed. So, the latest Bharat Bond ETF issue will likely draw investors, who should earn 150 basis points more than the yields on existing tax-free debt. Set to be launched in July, the latest Bharat Bond ETF series aims to raise Rs 14,000 crore. This tranche of mutual fund units, tapping into retail savings, is estimated to yield a tax-free return of 6.21% for people in the marginal tax bracket. Those returns easily outpace the gains from existing tax-free bonds in the secondary market, perhaps by more than 150 basis points. So, these are cool bets for high net worth individuals shifting funds from risky assets. Tax Free Bonds (AAA) are now trading at 4.65% yield-to-maturity, a gauge used to measure returns on … [Read more...] about Should you invest in Bharat Bond ETF?
Delhi’s labour minister Gopal Rai said, “The Delhi Government launched a website last week for registration of construction workers in the city. We have received very good response. The applications are being screened. We will soon be starting a verification drive following which the workers will be registered. The Covid-19 crisis has severely affected the livelihoods of many construction labourers and the Delhi government is taking all possible measures to support them.” … [Read more...] about 46k construction workers traced so far for re-registration in Delhi govt’s monetary aid scheme
The Union Cabinet has approved to extend the ambit of the Pradhan Mantri KisanSamman Nidhi (PM-KISAN). The revised Scheme is expected to cover around 2 crore more farmers, increasing the coverage of PM-KISAN to around 14.5 crore beneficiaries, with an estimated expenditure by Central Government of Rs. 87,217.50 crores for year 2019-20. The key element of PM-KISAN is income support of Rs 6000 to the small and marginal landholder farmer families with cultivable land holding upto 2 hectare across the country. The amount is being released in three 4-monthly instalments of Rs 2000 each over the year, to be credited into the bank accounts of the beneficiaries held in destination banks through Direct Benefit Transfer mode. … [Read more...] about 50 days of Modi government: How business and economy are shaping
Last month, she announced a partial rollback of the enhanced surcharge on foreign portfolio investors (FPI) levied in the Budget. The other measures included ICE (internal combustion engine) vehicles will coexist with EVs (electric vehicles) and that there is no phasing out of ICE vehicles -- a fear expressed in certain quarters of the auto industry. … [Read more...] about FM Nirmala Sitharaman to release report card on first 100 days of Modi 2.0