| Incipient signs of recovery |
29-OCT-09 |
|
The monetary policy underlines the incipient signs of recovery of the global economy and improving prospects for the domestic economy. |
| |
|
| Calibrated approach |
29-OCT-09 |
|
The Reserve Bank of India has clearly chosen not to upset the recovery and growth momentum for now by keeping key policy rates unchanged in the second quarter review of the monetary policy for 2009-10. |
| |
|
| Soon, new rules may limit bankers' pay |
28-OCT-09 |
|
Taking a cue from other banking sector regulators, the Reserve Bank of India (RBI) is set to issue fresh guidelines on compensation policies of private and foreign banks. |
| |
|
| RBI restores SLR to 25% |
28-OCT-09 |
|
Beginning the end of its accommodative monetary policy, the Reserve Bank of India (RBI) today restored the statutory liquidity ratio (SLR) to 25 per cent from 24 per cent and closed the special financing window set up for mutual funds and home finance companies. |
| |
|
| BS Jury |
28-OCT-09 |
|
By reinstating the SLR requirement to the pre-crisis levels of 25 per cent, even as the banking system is still sitting on surplus holdings of more than 27 per cent, the Reserve Bank if India governor has signalled that sooner or later the policy of monetary easing will have to be withdrawn. |
| |
|
| No change in held-to-maturity limit |
28-OCT-09 |
|
The cut-off yield at government bond auctions may be higher by three or four basis points, as the Reserve Bank of India has not accepted the demand for an increase in the limit on securities kept in the Held to Maturity (HTM) category. |
| |
|
| Bank profits likely to take a knock |
28-OCT-09 |
|
Bank profits could take a knock over the next four quarters, with the Reserve Bank of India (RBI) today mandating a loan-loss coverage ratio of 70 per cent. |
| |
|
|
|
|
|
| MONETARY POLICY: In 2 minutes |
28-OCT-09 |
|
Monetary measures:
* The bank rate, repo rate, reverse repo rate and CRR unchanged at 6%, 4.75%, 3.25% and 5%, respectively
* SLR raised to 25% of NDTL
* GDP growth target for FY10 unchanged at 6% with an upside bias; RBI warns agricultural output is likely to be lower than in the previous financial year
Key objectives:
* RBI projection of inflation by the end of March 2010 revised to 6.5%, with an upside bias, from the earlier target of 5%
* Medium-term inflation target 3%
* Price stability
Stance for the review:
* Keep a vigil on trends in inflation and be prepared to respond swiftly and effectively through policy adjustments to stabilise inflation expectations
* Monitor the liquidity situation and manage it actively to ensure credit demands of productive sectors are adequately met; also securing price stability and financial stability
* Maintain a monetary and interest rate regime consistent with price and financial stability, the one which is supportive of |
| |
|
| A balancing act |
28-OCT-09 |
|
The RBI has carried out a balancing act with the latest credit policy, with the twin purposes of sustaining early stage economic recovery and controlling rising inflation. |
| |
|
| Inflation to drive future action |
28-OCT-09 |
|
The policy review is an emphatic assurance that the central bank is watching, calibrating and now definitely timing for a quantitative exit road map. |
| |
|
|
|
|
|
| RBI nod not must for rural expansion |
28-OCT-09 |
|
Banks will no longer need permission of the Reserve Bank of India (RBI) to open branches in rural and semi-urban centres, officially termed Tier-3 to Tier-6 centres. |
| |
|
Content Guide
