The European Central Bank will restart its controversial government bond purchases rather than offer banks another round of unlimited three-year loans as the sovereign debt crisis worsens, a survey of economists shows.

ECB favours buying bonds over bank loans

Business Standard

The usual year-end scramble for deposits by banks turned into a mad rush this year, with Rs 2 lakh crore flowing into the banking system in the last week of March. This was the highest flow in at least five years (see chart).

Year-end rush sees Rs 2 lakh cr flowing into banking system in one week

The pace of corporate fund raising through bonds slowed down in fourth quarter ended March 2012 to Rs 54,000 crore from Rs 71,000 crore in October-December 2011. The high coupon rate impacted the volume of bond issuances, Karthik Srinivasan, co-head financial sector rating Icra said. Icra said bond issuances in January-March 2011 stood at Rs 36,000 crore.

Corp bond issuances dip in Q4

Private sector lender Development Credit Bank (DCB) on Friday said its net profit for the quarter ended March 31, expanded 51.8 per cent, to Rs 17.3 crore from Rs 11.4 crore in the corresponding period previous year. Lower provisions and higher interest income aided the bank's earnings during the quarter. For 2011-12 (April-March), the bank's net profit doubled to Rs 55.1 crore from Rs 21.4 crore a year ago.

DCB's Q4 profit rises 52%

Ahead of the Reserve Bank of India's monetary policy next Tuesday, Naina Lal Kidwai, country head in India and director for Asia Pacific, HSBC, on Friday said liquidity crunch called for a further cut in cash reserve ratio (CRR) and token reduction in interest rate.

Further CRR cut will ensure the much needed liquidity: HSBC

IDBI Bank is setting up its second infrastructure debt fund (IDF) with authorised capital of Rs 1,000 crore through the non-banking financial company (NBFC) route.

IDBI Bank to create another infra debt fund with Rs 1,000 cr

As rupee weakened against the dollar in 2011-12, RBI sold dollars to arrest the fall which in turn depleted its foreign exchange reserves.

Rupee's weak show

Ahead of RBI's annual credit policy announcement, state-owned Oriental Bank of Commerce (OBC) has slashed fixed deposit rates by up to 0.5%, a development which could signal a reversal of the high interest rate regime.

OBC cuts interest rates by up to 0.5%

Press Trust of India

The Reserve Bank has suggested setting up a rehabilitation fund for reviving sick micro, small and medium enterprises (MSMEs) in the wake of rising number of such units.

RBI for setting up of rehabilitation fund for sick MSMEs

The government is expecting a net inflow of Rs 1,100 crore in the current fiscal from small savings schemes like PPF and MIS which became more attractive after the Centre's decision to hike interest rates on them.

Govt expects to net Rs 1,100 cr from small savings in FY13

Despite various transactional restrictions still in place, there are fears of volatility returning to the rupee-dollar exchange rate.

Rupee volatility may keep RBI from lifting forex curbs 

China's decision to widen the yuan's trading band against the dollar for the first time since 2007 signals a drive toward a convertible currency that also saw overseas investors get bigger investment quotas this month.

China doubling yuan band signals drive for convertibility

The yield on government securities are expected to stay range-bound ahead of the Reserve Bank of India&rsquo;s (RBI) annual monetary policy on Tuesday.

Govt bond yields to stay range-bound

Hongkong and Shanghai Banking Corporation (HSBC) is not likely to buy the retail and commercial banking businesses of Royal Bank of Scotland (RBS) in India if it does not get the majority of the latter&rsquo;s branches here, sources familiar with the development have told Business Standard.

Without branches, HSBC may call off RBS deal

Australia's leading bank Westpac today said, it will open its first branch in India to increase commercial and wholesale banking business in the region after having received clearance from the Reserve Bank of India.

Australian bank Westpac to open branch in Mumbai

The Reserve Bank of India (RBI) has approved Brickwork Ratings as an eligible Credit Rating Agency (CRA) for bank loans/facilities.

RBI approves Brickwork as rating agency for bank loans

The Reserve Bank today hinted at lowering interest rates saying that focus of monetary policy needs to be shifted to arrest declining growth while keeping inflation under control.

RBI hints at rate cut tomorrow to boost growth

Reuters 

The growth in the Indian economy may have bottomed out in the October-December quarter, going by an improved show subsequently, according to the Reserve Bank of India (RBI).

Growth may have bottomed out in Q3

As Hong Kong establishes itself as a hub for offshore trade and investment in China's currency, the city's family-owned banks can be acquired at some of the lowest valuations since the global financial crisis.

Hong Kong takeovers loom large with banks lending in yuan

ING has set a deadline of the third week of May to submit bids for its Asian life insurance business, sources said on Monday, as the Dutch bancassurer kickstarted its Asian divestments to repay part of the bail-out money received during 2008 financial crisis.

May deadline for $6.5-bn ING Asia insurance bids: Sources

The board declared an interim dividend of Rs 3 per share (of face value Rs 1 each). It also announced a one-time special dividend for Rs 3 per share on the eve of its silver jubilee year.

CRISIL Q1 net rises 24% to Rs 57 cr

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