The critical agenda with Reserve Bank of India now is to maintain adequacy and cost of liquidity in such a manner that market (and monetary) dynamics stay as catalysts to growth momentum without inflaming inflationary pressures. The focus on growth gains priority, while the government struggles to address issues concerning fiscal and trade deficit with limited ability to address the issues from the cost side.

Watch after addressing liquidity: Romesh Sobti

Business Standard

We expect interest rates to come off with growth slowing and inflation peaking off. We are relieved to see that the Reserve Bank of India&rsquo;s (RBI&rsquo;s) policy on Thursday would imply no further tightening monetary measures, and that future actions will be towards lowering rates.

Time to switch gears: Indranil Sengupta

Since investment and savings rates are likely to be slow in the next financial year, too, the Economic Survey on Thursday called for fine-tuning of policies to attract foreign direct investments.

Plug saving-investment gap with FDIs

The writer of economic survey 2011-12, chief economic advisor Kaushik Basu, chose not to disclose the mathematical formula for the Comparative Rating Index for Sovereigns (CRIS) in the document but hinted this finance ministry exercise initiated by him would be taken forward.

Rating index gets a push

Though the Reserve Bank of India (RBI) has taken a slew of measures to stem the rupee&rsquo;s volatility, the Survey has called for more aggressive steps, as it impacts investors&rsquo; confidence.

More aggressive steps needed to manage rupee

With many major insurance companies being part of a financial conglomerate, the linkages between banks and insurance companies are a matter of &ldquo;concern&rdquo;, said the Survey.

Firewalls to address bank, insurance linkage issue

The rupee appreciated by 11 paise to Rs 50.27 per US dollar in early trade today on the Interbank Foreign Exchange on increased foreign capital inflows.

Rupee gains 11 paise vs dollar in early trade

Press Trust of India

The rupee pared early losses to end the day 20 paise up against the US currency as Budget proposals to allow overseas borrowings for more sectors and doubling import duty on gold boosted the sentiment on domestic currency.

Budget impact: Rupee up 20 paise Vs dollar

The venture capital industry in India is likely to get a strong push with the proposed venture fund, the Rs 5,000-crore India Opportunities Venture Fund with Small Industries Development Bank of India (Sidbi). This is expected to enhance funds to the micro, small and medium enterprises (MSMEs).

Strong push for VCs

Budget 2012-13 has been presented against the backdrop of a turmoil in the euro zone and domestic political uncertainty.

Not path-breaking, but very realistic: Gagan Banga

Instead of making great promises, the Budget has delivered on specific measures, though there has been no out-of-the-box reforms.

Probably the best the govt could do: Raamdeo Agrawal

The rupee fell on speculation that importers stepped up dollar purchases to meet payments ahead of the March 31 financial year-end. The currency reversed an earlier gain on concern higher oil prices would boost India&rsquo;s import costs, according to Corporation Bank. Brent oil has risen 11.7 per cent this year to $125.31 a barrel. The rupee rose earlier on speculation that gold imports would slow after the government increased rates on the metal, helping rein in the nation&rsquo;s current-account deficit.

Rupee falls on dollar purchase speculation

The rupee today lost 16 paise to close at two-month low of 50.39/40 against the US dollar on sustained demand for the American currency from importers.

Rupee falls to two-month low, loses 16 paise

The rupee dropped for a second day on speculation that importers stepped up dollar purchases to meet payments before the March 31 financial year-end.

Rupee falls for the second day 

To tide over their bad loans and structure their loan products in a better way, banks will now rate B-schools and other educational institutions. In a recent meeting between banks and over 150 education institutes, it was decided that Indian Banks Association will come up with a rating model for institutes. This would be done under the aegis of Pritam Singh, director, International Management Institute, New Delhi.

Education loans: Banks to rate institutes

The rupee dropped for a third day on speculation a widening Budget deficit will weigh on its credit rating, damping demand for the nation&rsquo;s assets.

Rupee falls on concern of Budget deficit

The rupee today hit a fresh nine- week low at 50.90 against the dollar in the late morning trade, due to persistent demand for the American currency from banks and importers.

Rupee drops to 9-wk low at 50.90 vs dollar

The rupee today plunged by 50 paise to close at sub-51 level after more than two months against the dollar amid a steep fall in stocks as investor sentiment took a blow after allegations of massive losses to the government in coal blocks allocation.

Rupee loses 50 paise, closes below 51-level

The surge in demand for funds on the last day of the reporting fortnight and long weekend pushed inter-bank call rate to two-month high of 10 per cent.

Call rate hits 2-month high of 10% on liquidity squeeze

The RBI need not intervene in the forex market as of now to prop up a weakening rupee, the chief economic adviser in the finance ministry said on Friday.

Basu favours no intervention in forex market now

Reuters 

According to the Reserve Bank of India (RBI), total outstanding credit to this sector rose to Rs 3.76 lakh crore in March 2011, from Rs 2.78 lakh crore a year earlier.

Loans to MSMEs rise to 15.1% of total bank credit 

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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