Despite a challenging macro environment, it was encouraging to see the finance minister continue on the path of fiscal consolidation by targeting a lower target of 4.6 per cent of GDP for financial year 2011-12 compared to 5.1 per cent in financial year 2010-11. As expected, the Budget contained various supply-side measures to address the inflation problem (such as incentives to improve food production, ambitious allocation for infrastructure projects etc).

Comment: Gunit Chadha

Business Standard

The Union Budget 2011-12 attempts to ride on India&rsquo;s rapid recent economic growth while controlling the inflation that has flared up in the past few months. The Budget assumes a high GDP growth of nine per cent and attempts to better last year&rsquo;s fiscal targets.

Comment: Roopa Kudva

In his Budget, Finance Minister Pranab Mukherjee on Monday pegged the net government borrowings at Rs 3.43 lakh crore, lower than the Rs 3.45 lakh crore budgeted last year.

Market cheers lower borrowings

The finance minister has announced wide-ranging measures to ensure that economic growth remains robust in the medium term, with a thrust to infrastructure, social sector, boosting investment in agriculture, and expanding productivity in industry as well as attracting foreign investment in the country.

Comment: O P Bhatt

This was an important Budget as the Indian economy was grappling with important issues. The finance minister has touched upon many of these key issues, including growth, infrastructure development, social sector reforms, and government finances.

Comment: Neeraj Swaroop

In the Union Budget tabled today, the government succeeded splendidly in retaining its focus on agriculture, infrastructure and social spending; to set the pace for sustainability of growth, not only in the near-term but also uncompromisingly in the long-term, while simultaneously maintaining focus on fiscal discipline.

Comment: Rana Kapoor

The government would provide an additional Rs 6,000 crore capital to state-owned banks in financial year 2011-12 to help them maintain at least eight per cent capital adequacy ratio in Tier-I level, Finance Minister Pranab Mukherjee said on Monday while presenting the Union Budget for 2011-12 (April-March) at the lower house of the Parliament.

Govt to infuse Rs 6,000 cr into PSU banks

The Reserve Bank of India (RBI) has proposed amendments to the Banking Regulation Act, 1949, Finance Minister Pranab Mukherjee said in his Budget speech on Monday. The government has decided to table the Bill during the Budget session of Parliament.

Banking Bill to be tabled this session

Finance Minister Pranab Mukherjee on Monday said a slew of financial sector legislation to be introduced in financial year 2011-12 will pave the way for growth in foreign direct investments (FDI) in insurance, pension and banking sectors.

FM fast-tracks pension laws

Faced with an acute liquidity crunch, the Union Budget has brought little cheer to microfinance institutions (MFIs). However, MFIs have welcomed the recognition of their role in financial inclusion by Finance Minister Pranab Mukherjee.

FM offers Rs 100-crore fund for microlenders

Better fiscal balance on back of revenues from 3G auctions.

Lower fiscal deficit gives us comfort: RBI

Public sector lender Indian Bank has hiked interest rates on Foreign Currency Non-Resident (FCNR) (Banking) and NRE (Non-Resident External account) deposits with immediate effect.

Indian Bank hikes interest rates

Press Trust of India

UK-headquartered banking major HSBC today reported 82% surge in profit before tax (PBT) from India operations to a record-breaking $679 million, driven by a jump in credit offtake by corporates.

HSBC India reports 82% surge in PBT at $679 mn

Three leading financial institutions and banks are in talks with Reliance Industries Ltd (RIL) to sell their entire stake in Infrastructure Leasing &amp; Financial Services (IL&amp;FS), giving the Mukesh Ambani-owned company a controlling stake.

Financial institutions, banks in talks with RIL to sell IL&FS stake

Industry may have been criticising the Budget proposals to levy service tax on insurance and health services, but the expected revenue mop-up from these services explains the reason behind the finance minister&rsquo;s move. The proposed expansion of the service tax net will add Rs 6,050 crore to the government&rsquo;s service tax kitty and a substantial part of this revenue will come from tax on life insurance services alone.

Insurance, healthcare to give maximum service tax

In its second tranche of retail bonds, the country&rsquo;s largest bank, State Bank of India, may end up retaining around Rs 5,500 crore received against Rs 2,000 crore that was notified.

SBI may retain Rs 5,500 cr in 2nd retail bond issue

&ldquo;Till now, we have disbursed more than Rs 27,000 crore and expect the figure to touch Rs 33,000 crore this fiscal. Last year, the figure was around Rs 26,000 crore,&rdquo; said Rajeev Sharma, Director (projects) of PFC in Kolkata.

PFC's loan disbursement to touch Rs 33,000 crore

Boosts ongoing trend, as scale of proposed need and financing draw global investors.

Infra push to attract more PE funds

Bank credit to commercial real estate, a sector under regulatory scanner, rose by 14.9 per cent in the 10 months ended January, as against a fall of 4.4 per cent during April 2009-January 2010. According to Reserve Bank of India (RBI) data, as of January 28, outstanding credit to commercial realty stood at Rs 1,05,884 crore.

Commercial realty, retail see buoyancy in credit flow

Interest rates on home loans up to Rs 25 lakh may ease in the near-term following the government&rsquo;s decision to classify such loans as priority-sector advances.

Rates on home loans up to Rs 25 lakh may ease

Mortgage financier Housing Development and Finance Corporation (HDFC) has increased its retail prime lending rate (RPLR) by 25 basis points (bps) to 15.5 per cent, with effect from March 1. The increase would affect all home loans linked to RPLR and would be applicable to new as well as existing customers, the lender said.

HDFC raises RPLR 25 bps

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