Contrary to popular perception on interest rate movement, expected to head north following a likely central bank action on monetary tightening, banks may actually end by cutting rates in the below-prime lending rate region for at least their corporate clients.

Undisbursed loans may lead to rate war, even if RBI tightens

Business Standard

On the back of a lower-than-expected credit offtake, bond issuance by banks in the third quarter dipped sharply.

Banks sleeping on bond street, issuances dive 35% in Q3

RBI survey ups '10-11 growth forecast

But, Canara and Oriental Bank of Commerce turn the tide on lower provision, rising interest and fee incomes.

More goverment banks take a hit on net profit in third quarter

RBI says food supply constraints to taper off only over time.

Food inflation may engulf other sectors

Despite the economy seeing revival, credit flow to the industrial sector moderated to 14.2 per cent on a year-on-year basis as of November 20, 2009, as against 37 per cent a year ago.

Credit flow to industry falls, infra gains most

The National Bank for Agriculture and Rural Development (Nabard) has estimated a credit potential of around Rs 47,451 crore in Tamil Nadu for 2010-11, an increase of 11.3 per cent year-on-year.

Nabard pegs TN credit potential at Rs 47451 cr

The revival in capital flows, which started in financial year 2009-10 and gathered momentum in the second quarter, has remained buoyant even in the third quarter, according to the second-quarter macroeconomic and monetary development report released by the Reserve Bank of India (RBI) today.

Revival in capital inflows gathers momentum

After losing customer accounts to public sector banks at the height of the downturn, private sector banks seem to be on their way back.

Govt banks struggle, but private banks'credit growth picks up

The flow of resources from other entities to the corporate sector has almost made up for the shortfall in non-food bank credit.

Non-bank funds cover up for lower credit flow

The Reserve Bank of India, in its Monetary Policy review today has hiked the Cash Reserve Ratio (CRR) by 75 basis points (bps) to 5.75 per cent, while holding the repo and reverse repo rates steady in line with market expectations.

RBI hikes CRR by 75 bps; repo rates untouched

The US Senate has voted to confirm Ben Bernanke as the Chairman of the Federal Reserve for the second four-year term.

Senate confirms Bernanke as Chairman of Federal Reserve

Economists were &quot;slightly surprised&quot; by the extent of hike (75 basis points) in mandatory cash reserves of banks held by the Reserve Bank, but felt that the apex bank's move was strongly influenced by rising inflationary pressures.

CRR hike slightly aggressive, int rates not seen rising now

Press Trust of India

Unhappy over the Reserve bank of India's (RBI) more-than-expected 75-basis point hike in cash reserve ratio (CRR) to squeeze money supply, India Inc today cautioned that economic growth will be hit if accommodative monetary stance is reversed hastily.

India Inc disappointed at CRR hike

India is clearly showing strong growth, as outlined by the RBI which stated that the output gap is narrowing with economy operating close to potential and raised its baseline projection for GDP growth in FY10 to 7.5 per cent from 6 per cent forecast in October 2009 in the monetary policy announced today.

Policy review: Banks with funds to emerge winners

The Reserve Bank today said the agriculture growth will be muted this fiscal on account of the impact of poor monsoon on kharif crops.

RBI projects zero growth in farm sector output

Reserve Bank of India (RBI) Governor D Subbarao said the hike in the cash reserve ratio (CRR) announced today, would not affect credit availability to the private sector and harden interest rates immediately.

CRR hike not to affect pvt sector's credit flow: Subbarao

The Reserve Bank of India (RBI) has done the right thing by hiking the Cash Reserve Ratio (CRR) by 0.75 per cent to 5.75 per cent, a top banker said.

O P Bhatt supports RBI's CRR hike

With budgetary preparations on in full swing, the Reserve Bank of India (RBI) today advised the Finance Minister to at least partially rollback the stimulus that was provided to help the industry cope with the financial crisis.

RBI pitches for partial rollback of stimulus

Indian Overseas Bank (IOB) reported a 73.81 per cent drop in net profit for the quarter ended December 31, 2009, to Rs 101.7 crore as compared with Rs 388.44 crore during the same period last year.

IOB net drops 74%

The bond market sprung a surprise with only a marginal rise in yields on a day when the Reserve Bank of India raised the cash reserve ratio by 75 basis points (bps) to suck out excess liquidity in the system.

Bond yields see marginal rise

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