Tag Archive for policy

Credit Access Grameen Limited reacts to RBI Policy

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By Vivek K. Mobile: 09920183006 Email: indianshowbusiness@gmail.com

RBI Policy reaction quote by Mr. Udaya Kumar Hebbar, MD and CEO, Credit Access Grameen Limited f

” After enhancing the exposure cap from 10% to 15% in October 2018, by allowing exposure of banks to NBFCs based on risk-weighted as per the rating assigned by accredited rating agencies, RBI has given another helping hand for well rated NBFCs. This policy change could potentially encourage the banks to increase their lending to NBFCs. Further, the reduction of cost of funds by 25bps and expected boost in consumption on account of projected low inflation could bring stability to the NBFCs Sector, particularly those who are in rural mass market”

LIC MF Reaction on RBI Credit Policy

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By K Ashwin Mobile: 09920183006 Email:indianshowbusiness@gmail.com

Here is the reaction from Mr. Marzaban Irani – Fund Manager Fixed Income – LIC Mutual Fund.

Mr. Irani’s Quote:

‘As per MPC announcement there is no change in rates. Our initial thoughts say that any action going ahead will be data dependent. Stance has been changed to calibrated tightening which indicates status quo or hike going ahead. Rupee has reacted negatively.”

HDFC Bank’s Treasury Research Team’s Report on RBI Policy Watch: The Long and Winding Price Road

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By K Ashwin Mobile: 09920183006 Email:indianshowbusiness@gmail.com

Mr. Abheek Barua, Chief Economist, HDFC Bank

Today’s policy decision suggests that the RBI seems to be taking a long term view on inflation rather than remaining purely data dependent. The discussion on the possible increase in inflation early next year (Estimate of Q1 2019-20 to 5%) as well the assertion that policy rate changes impact the real economy with a lag (with a shorter lag in transmitting to lending rates) corroborates this.

  • Also, RBI’s statements on increasing external risks and discussions on currency contagion (currency war) in the press conference, confirms our belief that the RBI is not in favour of excess depreciation and seems to want to hold on to a certain exchange rate level. A rate hike is a textbook method of defending a currency.
  • Given the upside risks to inflation, discussed extensively, another policy rate hike cannot be ruled out. However, if there is an escalation in trade war risks and a resultant global output compression then the RBI could be prompted to stay on a prolonged pause.
  • The RBI committed that liquidity conditions would be maintained close to the neutral level. This means the supply side pressures in the second half of this year could be offset by OMOs but it is unlikely that we will have any liquidity surplus. We expect OMO purchases to the tune of INR 800bn in 2018-19, including INR 300bn done so far.
  • The bond market seems to have reacted in a positive way to the rate hike (decline in 10 year yield by 6bps). This we believe is in response to the RBI’s commitment to keep the liquidity situation neutral instead of allowing the system to move into a large deficit.
  • We believe, that another rate hike is still on the table and as a result bond yields could continue to go up (after today’s relief rally). In this regard, it’s important to watch out for the inflation readings in September and October (which could be reflective of the impact of higher MSPs). Even without a major uptick in inflation, the sheer supply of government bonds (states and centre) could keep the yields elevated. Important to note, so far only 20% of the budgeted borrowings for centre and state governments has been done with majority of the supply expected to come in the second half of the year. Read more

Digit Insurance Expands Partner Base Joins hands with Flipkart, Amazon and Policy Bazaar

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By K Ashwin Mobile: 09920183006 Email:indianshowbusiness@gmail.com

Digit Insurance—a new age insurance company which aims to “make insurance simple” today announced its partnership with Flipkart, Amazon and Policy Bazaar to launch various plans to protect new mobiles bought on Flipkart & Amazon, and International Travel & Motor Insurance plans bought on Policy bazaar. The plans offer wide range of features for customers to choose and as per their individual need.

 

Speaking about Digit’s partner expansion Jasleen Kohli, Chief Distribution Officer said, “We are excited about our association with Flipkart, Amazon and Policy Bazaar as it is completely in line with our vision to make insurance simple for our customers. In India, a lot of people buy phones as gifts for their family. Therefore, ours is an IMEI linked cover and it doesn’t matter who is using the phone, the device will still be covered. Another feature of our insurance is worldwide coverage as we understand that an increasing number of people are going abroad on holidays and they use their phones extensively. We believe, this partnership will also help in customer acquisition across the length and breadth of India.” Read more