Page 277 - Latest Updates on Reserve Bank of India
States' unhappiness index on the rise
Centre's proposals on settling states' demand for GST compensation can throw up new challenges
 "States' unhappiness index on the rise")
Resolving stressed assets
The new package should not be used to kick the can down the road
 "Resolving stressed assets")
72% loans affected due to Covid-19, economic recovery improving: K V Kamath
Speaking about the loan restructuring, the chairman said that there will be complications, but "sure that bankers will take a considered decision to reach an equitable proposal"
 "72% loans affected due to Covid-19, economic recovery improving: K V Kamath")
Bond traders in India on edge again amid conflicting signals from RBI
The RBI also said it would inject one trillion rupees via 56-day repo operations while offering to take back longer duration one- and three-year cash
 "Bond traders in India on edge again amid conflicting signals from RBI")
Kamath committee: Analysts applaud criteria, but fear not all may benefit
Analysts remain skeptical of the timeline to implement the restructuring guidelines and the number of companies that may meet the eligibility criteria
Kamath panel identifies 26 stressed sectors, outlines rules for recast
Bankers estimate loans worth Rs 4-4.5 trillion would need recast going by the panel rules
 "Kamath panel identifies 26 stressed sectors, outlines rules for recast")
A silver lining
Expected surplus farm output will need careful handling
 "A silver lining")
Real estate sector welcomes RBI approval of Kamath panel's debt recast plan
The committee has selected 26 sectors, including real estate, which will require restructuring based on its analyses of financial parameters hit due to the economic crash caused by the Covid-19
 "Real estate sector welcomes RBI approval of Kamath panel's debt recast plan")
RBI announces OMO for sale, purchase of govt securities of Rs 10,000 cr
RBI will conduct simultaneous purchase and sale of government securities under the Open Market Operation (OMO) for Rs 10,000 crore each on September 10, the central bank said on Monday
 "RBI announces OMO for sale, purchase of govt securities of Rs 10,000 cr")
Kamath committee picks 26 sectors for loan restructuring, says RBI
Central bank allowed lenders to grant loan moratorium for three months on EMIs falling due between March 1 and May 31; it later extended the scheme until August 31
India's GDP contraction should alarm everyone: Ex RBI Guv Raghuram Rajan
A week after India reported a significant contraction in its GDP during the April-June quarter of 2020-21 fiscal, Raghuram Rajan has said that the negative GDP growth numbers should alarm everyone
 "India's GDP contraction should alarm everyone: Ex RBI Guv Raghuram Rajan")
Experts advise caution on stagflation fears amid 24% GDP contraction
Say Centre, RBI should ensure their policies don't stoke inflation
 "Experts advise caution on stagflation fears amid 24% GDP contraction")
Increased risks for banks
Changes in priority sector lending should be revisited
 "Increased risks for banks")
Life after moratorium, for banks and borrowers
There are enough filters in the Covid-19 loan restructuring scheme to prevent misuse, but is it a tool to delay the growth in banks' bad loans? We will know after two years
 "Life after moratorium, for banks and borrowers")
Telecom, automobile companies lead earning downgrades, shows data
The financial sector has seen earnings downgrade of nearly 30 per cent amid uncertainty over NPAs build-up
 "Telecom, automobile companies lead earning downgrades, shows data")
RBI revises LFAR norms for banks to improve audit efficacy, risk management
The revised LFAR format will be put into operation for the period covering 2020-21 and onwards, the central bank said
 "RBI revises LFAR norms for banks to improve audit efficacy, risk management")
Kamath panel to submit recommendations on debt restructuring today
The panel was formed to advise the RBI on the debt restructuring of corporate borrowers facing stress due to the pandemic.
 "Kamath panel to submit recommendations on debt restructuring today")
A gloom-and-doom scenario: Why Bond market loves India's tax mess
The Reserve Bank of India has told banks that if they buy another 3 trillion rupees ($41 billion) of government bonds, they can park them in a bin that doesn't have to be marked to market
 "A gloom-and-doom scenario: Why Bond market loves India's tax mess")
New PSL norms may not be an immediate game changer for banking sector
Given the systemic risk aversion, credit growth may take a few quarters to revive on the back of these norms
 "New PSL norms may not be an immediate game changer for banking sector")
Start-up loans of up to Rs 50 cr under priority sector as RBI revises norms
Advances to weaker section now 12% of credit for scheduled banks and SFBs, rule doesn't apply to foreign lenders with under 20 branches. RRBs already have to lend 15% to weaker sector
 "Start-up loans of up to Rs 50 cr under priority sector as RBI revises norms")