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IDBI Bank strategic sale scrapped as financial bids below reserve price

The strategic sale of IDBI Bank is likely to have been scrapped as the financial bids put in by potential buyers were below the reserve price, sources said on Friday. The government and LIC were together looking to sell 60.72 per cent in IDBI Bank and had floated an Expression of Interest (EoI) in October 2022. Financial bids came in on February 6. Sources said the financial bids for the IDBI Bank strategic sale have come in lower than the reserve price set by the inter-ministerial group on disinvestment headed by secretaries in the finance ministry. According to sources, the bids for IDBI Bank have been opened and they were below the reserve price set by the IMG and agreed to by the core group on disinvestment, which is chaired by the Cabinet Secretary. Prem Watsa-led Fairfax and Emirates NBD are reported to have put in bids for the strategic sale of IDBI Bank. Currently, the government and state-owned LIC together hold a 94.71 per cent stake in IDBI Bank. The government owns 45.

India's foreign exchange reserves drop $11.68 billion to $716.81 billion

India's forex reserves dropped by USD 11.683 billion to USD 716.810 billion during the week ended March 6, the RBI said on Friday. In the previous reporting week, the overall reserves had increased by USD 4.885 billion to an all-time high of USD 728.494 billion. For the week ended March 6, foreign currency assets, a major component of the reserves, decreased by USD 9.880 billion to USD 563.245 billion, according to data released by the central bank. Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves. The value of the gold reserves declined by USD 1.612 billion to USD 130.017 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down by USD 146 million to USD 18.720 billion. India's reserve position with the IMF also fell USD 45 million to USD 4.828 billion in the reporting week, according to data.

Rupee forward premiums signal bets of impending RBI FX swap: Bankers

The rupee fell to an all-time low of 92.4250 to the US dollar on Friday and it has lost about 1.5 per cent since the war broke out on February 28

Fixed tenures may be next for upper-layer NBFC chiefs under new norms

Proposal could mirror RBI's 15-year limit for private bank leaders

Oil price shocks: Rupee falls to new intraday low of ₹92.37 a dollar

Currency weakens to a fresh intra-day low as oil prices surge amid West Asia tensions, with RBI stepping in through dollar sales to limit volatility

Jittery bond traders constrain RBI's liquidity management options

The weighted average call rate (WACR) has stayed around 5.07 per cent , since the start of February, even while the policy repo rate remains at 5.25 per cent

RBI to buy Rs 50,000 crore government bonds through OMO auction on Friday

RBI will purchase Rs 50,000 crore of government bonds through an open market operation auction on Friday as part of its liquidity infusion measures

Cred gets final license from RBI to operate as payment aggregator

Fintech firm Cred receives RBI's final licence to operate as a payment aggregator, allowing it to onboard merchants and process payments across instruments

RBI revises counterparty credit risk rules to align with Basel norms

RBI revises counterparty credit risk framework to align with Basel norms, refining capital treatment for derivatives exposures and clarifying rules for clearing members

Rupee, bonds rebound as crude prices fall sharply, ease pressure

The rupee strengthened and bond yields eased as crude oil prices fell sharply from recent highs, improving market sentiment and boosting demand for government securities

RBI caps bank dividend payout at 75% of profit after tax under new norms

RBI says banks can declare dividends based on capital adequacy levels, with payouts capped at 75 per cent of profit after tax and subject to CET1 buffers and supervisory conditions

Digital lending boom raises risks if credit poorly underwritten: RBI DG

RBI Deputy Governor Swaminathan J cautions that while digital lending and platform-based models expand financial access, weak credit underwriting could deepen borrower distress

RBI steps up support for rupee, bond markets as crude oil prices surge

Central bank steps into forex and bond markets as rising crude prices threaten inflation, the rupee and government finances

West Asia conflict threatens Indian economy's 'Goldilocks' phase

Surging crude oil prices amid the West Asia conflict threaten the RBI's 'Goldilocks' phase, raising inflation concerns and complicating monetary policy as growth headwinds intensify

Rupee hits new low as crude surge pressures bonds and currency markets

The rupee touched a fresh low as crude oil prices crossed $100/bbl and global volatility rose, while bond yields eased later after the RBI's OMO purchase helped stabilise sentiment

Govt buys back G-secs worth ₹6,309 crore in RBI's switch auction

The government has bought back G-secs worth Rs 6,309 crore from the switch auction conducted by the Reserve Bank of India (RBI), and has issued bonds worth Rs 6,431.797 crore, according to a release. Government securities (G-Secs) are low-risk debt instruments that are issued by the government and offer fixed returns and are backed by a sovereign guarantee. The securities repurchased by the government were part of the scheduled bonds set to mature in the next financial year. These included Rs 1,684 crore of 7.33 per cent GS 2026, Rs 1,035 crore of 5.74 per cent GS 2026, Rs 590 crore of 8.15 per cent GS 2026, and Rs 3,000 crore of 8.24 per cent GS 2027, the release said. In exchange, the government issued Rs 1,719.236 crore of 6.57 per cent GS 2033, Rs 986.526 crore of 7.62 per cent GS 2039, Rs 605.609 crore of 6.57 per cent GS 2033, and Rs 3,120.426 crore of 7.40 per cent GS 2062, the release added. This is the fourth switch auction by the RBI since February. In a bond switch, th

RBI injects ₹50K cr durable liquidity in banking system via OMO purchases

The Reserve Bank of India (RBI) on Monday injected Rs 50,000 crore into the banking system through Open Market Operation (OMO) purchases of government securities, according to a release. The Central bank purchased 6.33 per cent GS (Government Security) 2035 bonds worth Rs 13,507 crore, 6.01 per cent GS 2030 worth Rs 13,494 crore, 6.10 per cent GS 2031 of Rs 8,157 crore, 7.30 per cent GS 2053 of Rs 6,955 crore, 7.18 per cent GS 2033 worth Rs 4,479 crore, 6.92 per cent GS 2039 of Rs 2,304 crore, and 6.19 per cent GS 2034 of Rs 1,104 crore, it said. The liquidity in the banking system, currently, is estimated to be in surplus of around Rs 2.41 lakh crore. The OMO purchase auction was announced ahead of expected heavy outflows from the banking system due to advance tax and Goods and Services Tax (GST) payments scheduled later this month. This comes even as liquidity conditions in the banking system currently remain in a significant surplus of Rs 3.02 lakh crore. As per RBI data, it has

RBI likely selling dollars as rupee weakens amid Iran war, say traders

An over 20 per cent ​jump in ‌oil prices triggered a broad-based ‌selloff in Asian stocks and currencies on ‌Monday as ​investors fretted over ​the deepening conflict in the Middle East

Lead Bank Scheme needs to contextualise recent changes instead of tinkering

The draft circular makes changes in the coordination structure, with subcommittees for inclusion and literacy; agriculture; micro, small, and medium enterprises (MSMEs); and payment systems

Fraud safety net: RBI's new framework will boost trust in digital payments

The framework comes at a time when India's digital-payment ecosystem is rapidly expanding