Standard Chartered Bank&rsquo;s alleged sale of debentures to its private banking clients with an illegal buyback option has put the spotlight on debentures.

Bank fixed deposits are a better bet than debentures

Business Standard

The rate of interest at which the Reserve Bank of India (RBI) lends money to other banks is called repo rate. At present, it stands at 6.75 per cent.

What are policy rates?

The &ldquo;baby steps&rdquo; have finally given way to what Reserve Bank of India (RBI) Governor D Subbarao himself defined as a &ldquo;large step&rdquo;.

RBI fights inflation, wounds borrowers

Reserve Bank of India (RBI) Governor Duvvuri Subbarao tells Manojit Saha that while the common citizen will benefit from the central bank&rsquo;s action, the policy stance is consistent with sustaining high growth in the medium term.

Q&A: Duvvuri Subbarao

The Reserve Bank of India in its Annual Monetary Policy statement for FY12 departed from its past calibrated approach, delivering a larger dose of rate action while adopting the recommendations of working group on the operating procedure of the monetary policy. A 50 bps rate hike in the repo rate (upped to 7.25 per cent) which is now to become the single independently predicted policy rate is indeed a positive move.

Comment: Rana Kapoor

Policy stance aimed at curtailing demand and achieving price stability.

RBI abandons 'baby steps' to tackle inflation

RBI goes for the jugular as last eight rate increases and a bumper crop fail.

Held hostage by inflation

The Reserve Bank of India (RBI) has shifted towards a single policy rate regime. The reverse repo rate and the additional liquidity support rate have now been linked to the repo rate.

RBI shifts to single rate regime

Savings rate and returns from debt funds will be nullified by high borrowing rates.

RBI action: The good, the bad and the worst

The Reserve Bank of India (RBI), through its Monetary Policy announcement, reiterated its objective of reining in inflation, even if at the cost of moderating growth in the short term. At the same time, it has emphasised the importance of ensuring adequate liquidity for the markets.

Comment: Pramit Jhaveri

The Reserve Bank of India (RBI) has hiked the repo and the reverse repo rates by 50 basis points each in its annual policy review for 2011-12, in line with our expectations. This proactive move sends a loud and clear signal to all those following the India story closely, especially foreign investors, that RBI takes a long-term view and is willing to accept moderating growth in the short-to-medium term to curb the immediate threat of high inflation.

Comment: Stuart Davis

The Reserve Bank of India&rsquo;s (RBI&rsquo;s) Annual Monetary Policy for 2011-12 shows its unwavering commitment to fighting rampant inflation, which poses significant risks to future growth.

Comment: MD Mallya

The Reserve Bank of India (RBI) on Tuesday increased the provisioning requirements on certain categories of non-performing assets and restructured loans. Bankers, however, said the additional provisioning was unlikely to stress their earnings in coming quarters.

RBI tightens provisioning norms

Banks may raise several transaction and related charges.

High deposit rates, higher fees likely

With an eye on deepening the financial markets, the Reserve Bank of India (RBI) on Tuesday initiated further steps to boost trading in interest rate futures on government bonds.

RBI steps to boost trading in corporate bond futures 

Microfinance institutions, or MFIs, can breathe a sigh of relief after the Reserve Bank of India (RBI) on Tuesday said banks&rsquo; loans to micro lenders will be eligible for classification as priority sector advances subject to fulfilment of certain conditions.

RBI provides relief to MFIs

Inflation has emerged as a major fault line in India&rsquo;s economic structure, which is not conducive to the country&rsquo;s long-term growth prospects. RBI&rsquo;s stance has, therefore, clearly shifted into an inflation control mode and continuing its path of steady tightening, RBI has increased the policy rates along with measures to streamline the operating procedure of monetary policy.

BS Jury

The increase in policy rates by the Reserve Bank of India (RBI) today leaves banks with no choice but to pass these on. Bankers will increase their lending rates in order to protect their margins.

Banks set to increase lending rates

This monetary policy focuses on restoring RBI&rsquo;s credibility as an institution that both understands the dynamics of inflation and can fight it effectively. It does so by, first, painting a more realistic picture of the inflation outlook for the year ahead, instead of merely producing a set of optimistic estimates that are likely to go wrong.

Comment: Abheek Barua

The going has become that much tougher for corporate India. With the Reserve Bank of India (RBI) raising key policy rates (repo and reverse repo) by a steep 50 basis points, India Inc is staring at rising cost of capital. This in times when input prices are soaring and impacting margins adversely will put further pressure on earnings and future plans.

Rate rise blues for India Inc

A rate increase of 50 basis points and a hawkish rhetoric, a combination urgently required to address the problem of inflation, has been delivered by the Reserve Bank of India (RBI) in a bold move. There are several reasons why this policy is quite different from any other policy in this rate rise cycle.

Comment: Samiran Chakraborty

Financial Analysis: Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

Finance News Analysis, Financial Analysis and Research | Business Standard

Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

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