The Reserve Bank of India&rsquo;s (RBI&rsquo;s) latest quarterly report on the economy articulates that over the past 15 months, it has undertaken one of the sharpest monetary tightening seen across the world. Factoring in Tuesday&rsquo;s monetary measures, since March 2010, there has been a cumulative increase of 475 basis points in operational policy rates. Clearly, at this juncture, RBI remains steadfast in its single key objective of anchoring inflationary expectations. However, the 50 basis points increase does seem sharp.

RBI steadfast in anchoring inflationary expectations

Business Standard

The credit policy aims to maintain an interest rate environment that moderates inflation and anchors inflation expectations.

Rate cut not happening till mid-2012

Stock markets fell sharply on Tuesday as the Reserve Bank of India (RBI) raised key interest rates by 50 basis points (bps). The street expectation was of 25 bps.

Sensex dips 353 pts on RBI aggression

The key policy rate, or the repo rate, raised 50 bps to 8%.

RBI googly stumps industry, markets

Noting that controlling inflation was imperative for sustaining medium and long-term growth and investment momentum, the Reserve Bank of India (RBI) raised the repo rate by 50 basis points (taking it to 8 per cent), as against consensus expectations of a 25-basis point rise. RBI also noted the evidence of a broad-based slowdown in growth was not &ldquo;visible yet&rdquo;, nor are there any signs of respite from inflationary pressures.

Ultra hawkish RBI signals further rate rises ahead

Remain bullish, though, on India&rsquo;s long-term prospects.

Hawkish RBI makes FIIs nervous

The Indian flag is flying high in Deutschland. Anshuman Jain has joined the likes of Indra Nooyi and Vikram Pandit in scaling the pinnacle of corporate achievement by becoming yet another Indian to be put in charge of steering a multinational, in this case, arguably Europe&rsquo;s most venerable bank.

Newsmaker: Anshuman Jain

The rupee retreated from the highest level in almost three years on speculation of importers buying dollars to settle payments at the end of the month.

Rupee retreats from 3-yr high

Bank maintains NIMs at 2.6 per cent in Q1, advances up 20 per cent.

ICICI Bank: Return to growth

The premium valuation is a result of the company&rsquo;s unique business model, but its consistency will be tested.

SKS Microfinance: Scarcity value

Don&rsquo;t use it at all. Some facts about credit cards that you should know.

If you can't use it wisely

The rupee rose to a seven-week high on speculation an improving economy and rising interest rates would spur overseas demand for the nation&rsquo;s assets.

Rupee climbs to seven-week high as growth spurs inflows

The growing trend of taking loans for higher studies has its pitfalls. Bankers say many students take these loans lightly and default on initial payments.

Don't default at start of career

The RBI discussion paper on &lsquo;Entry of New Banks in the Private Sector&rsquo; has been a pleasant deviation from the existing norms. The regulator has laid out five basic criteria for discussion &mdash; minimum capital requirements; caps on promoter and other shareholders; foreign shareholding; eligible promoters and business plan.

'Welcome surprise from the bank regulator'

The discussion paper clearly shows that RBI is focusing on such new areas as whether big business houses should be allowed to float a bank, the kind of capital prescribed, penetration of banking and foreign shareholding. These are all relevant issues. We have in-principal shown our interest, but this is just a discussion paper, and not the final guideline.

'RBI is focusing on new and relevant areas'

Ten-year bonds gained on speculation the central bank will temper the pace of rate increases after the Federal Reserve pledged to keep borrowing costs low &ldquo;for an extended period.

10-year bonds gain

Broad-based performance, profitability have taken most by surprise and the bank is in a position to gain from this.

SBI: Sustainability is the question

Sadly, so will lending rates. Do not hurry to put all your money in existing offers.

Hold on! deposit rates could rise further

Just days after the July 26, 2005, deluge in Mumbai, Shalini Kamath&rsquo;s belief in safety of bank lockers was shattered. The cash and important documents she had kept in the locker were damaged beyond redemption as the locker was in the basement and submerged for days. &ldquo;My jewellery was restored but what about notes and documents?&rdquo; she asks. Worse, the bank brushed aside her plea for compensation.

Locking horns over bank lockers

Executives are dusting down the musty corner offices at private banks and spearheading a quiet revolution in the way they function.

Fresh blood revives old banks

The long-awaited, tax-saving infrastructure bond issue is out. Industrial Finance Corporation of India (IFCI) is the first company to issue these, at 7.85 and 7.95 per cent.

Useful addition to portfolio, but no harm waiting

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.

Page 407 - Finance News Analysis