Chief economic adviser Kaushik Basu on Monday said &quot;herd mentality&quot; of ratings agencies led to Fitch's revision of India's rating outlook to negative from stable, but added that the review was not surprising.

Kaushik Basu blames Fitch revision on 'herd mentality'

Reuters 

REUTERS - The RBI left interest rates and required bank reserves unchanged on Monday, defying widespread expectations for a rate cut and warning that relaxing policy could worsen inflation.

TIMELINE - Changes to repo rate since June 2000

Warren Buffett, whose prediction last year of a housing recovery was premature, is raising his bet on a rebound with his $3.85 billion bid for a mortgage business and loan portfolio from bankrupt Residential Capital LLC.

'Buffett extends real-estate bet with ResCap pursuit'

Business Standard

The wait for interest rate cuts will get longer after the central bank opted for status quo in its mid-quarter review of monetary policy.

Interest rate cuts get postponed

There is good news for the MSME sector in Uttarakhand. The State Bank of India (SBI), India&rsquo;s largest bank, will open an MSME branch at the Selaqui industrial area, near here.

Banks to open SME branches in industrial areas of Uttarakhand

Use of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SRFAESIA), 2002 or Securitisation Act, by cooperative bank to recover debts from defaulters has been challenged in the Gujarat High Court.

Use of Securitisation Act by cooperative banks challenged in Guj HC

The rupee today again breached the 56-level by falling 12 paise to 56.05 against the dollar in early trade on the Interbank Foreign Exchange on increased demand for the American currency from banks and importers.

Rupee down 12 paise at 56.05/dollar

Press Trust of India

The rupee fell for a second session on Tuesday, hitting a 2-1/2 week low at one point, on the back of strong dollar demand from oil firms, while continued worries about euro zone debt also curbed some of the demand for risk assets.

Rupee falters record low seen possible

The rupee today touched a two-week low of 56.13 but recovered some of the losses to close three paise down at 55.96 against the dollar amid foreign fund outflows and demand of the US currency from importers.

Rupee touches 2-week low but recoups to close at 55.96

The Indian government must reduce spending and not just raise taxes for fiscal consolidation, the Reserve Bank of India's Governor Duvvuri Subbarao said on Tuesday, a day after the central bank kept interest rates steady.

RBI chief says government must cut spending

Reserve Bank of India (RBI) Governor D Subbarao on Tuesday came out with a strong defence of the monetary policy stance announced yesterday. Acknowledging that his decision of not to cut interest rates amid slowing economic growth had not gone down well with the business community, Subbarao gave detailed reasons for his decision.

Subbarao defends monetary policy pause

The sharp rise in gold imports has drawn the central bank&rsquo;s attention and it is studying the factors contributing to this.

RBI looking into record high gold imports

The moderation in bank lending to small and medium enterprises (SMEs) due to a liquidity squeeze has forced them to opt for promoters&rsquo; money and personal loans to meet funding needs, according to rating agency CRISIL.

Dip in bank funding makes SMEs tap promoters' money, loans: CRISIL

Deutsche Bank on Tuesday said its profit after tax from the India business expanded 31 per cent to Rs 823 crore in 2011-12 (April-March) from Rs 630 crore a year earlier. Retail banking operations in India turned profitable during the year, aiding the growth in earnings.

Deutsche Bank's India biz PAT up 31% in FY12

The Odisha government has given its nod for merger of the loss-making Urban Co-operative Bank with Pune-based Cosmos Co-operative Bank, official sources said.

Odisha's Urban Co-op Bank set to merge with Cosmos Bank

The top three private banks in the country &mdash; ICICI Bank, HDFC Bank and Axis Bank &mdash; have rewarded their chief executives with higher remuneration in 2011-12, in line with the improved performance of their organisations.

Handsome pay raises for top three private bank CEOs

Rates on short-term debt instruments increased on Tuesday as tight liquidity conditions, saw banks raise issuances of certificates of deposit (CDs) and commercial paper (CP), dealers said.

Short-term rates rise as banks up CD, CP issuances 

Banks are leaving no stone unturned to grab a larger share of deposits flowing in from non-resident Indians (NRIs), with conducive conditions such as a weaker currency, higher interest rates and relaxed regulations.

NRI cash bounty for banks

The Reserve Bank on tuesday asked banks to finalise the road map for providing banking services to villages with less than 2,000 population by August.

Aug deadline for rural banking plan 

The joint ventures (JVs) and subsidiaries of banks might come under the Reserve Bank of India&rsquo;s purview if a high-level committee&rsquo;s recommendations are implemented. At present, the central bank can only monitor banks&rsquo; subsidiaries and JVs, but it does not have supervisory power.

Banks' arms may come under RBI purview

The rupee appreciated by 5 paise to 55.91 against the American currency in early trade today on the Interbank Foreign Exchange on dollar selling by exporters, amid a higher opening in the stock market.

Rupee up 5 paise against dollar in early trade

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