Tag Archive for RBI

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

P2P Lender Monexo Fintech gets RBI certification for NBFC – P2P

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

Monexo (www.monexo.co) Fintech (P) Ltd, one of India’s leading peer-to-peer lending platform, today announced getting NBFC P2P certification from RBI for its operations.  The accreditation makes Monexo Fintech one of the forerunners in the sector to get the certification.

India’s P2P lending platform’s growth is being largely driven by the increasing penetration of digital transactions, fintech innovations, and the increasing demand for affordable credit.  The RBI certification at this juncture will propel Monexo Fintech to gain traction in financial markets and help strengthen the confidence amongst its investor community. The company is also the first P2P platform in India to provide investors with an escrow account, the option of auto-invest and an insurance cover with borrower job-loss protection.

Speaking on the development, Mr. Mukesh Bubna, CEO and Founder said, ‘We are very pleased to receive the NBFC P2P certification by RBI.  It is an important milestone for us as a team. The certification further reinforces our commitment for technology led financial inclusion for every Indian. ‘

P2P lending is slowing emerging as an alternative investment asset class in India.  The tech led platform enables easy access to credit while giving high potential returns to investors.  Monexo Fintech’s platform presently has 100000 registered borrowers and 4000 registered lenders.  Cumulatively the platform has facilitated loans worth 20 crs till date. P2P lending is projected to be worth $4-5 billion by 2023, the sector’s recent inclusion into the larger regulatory ambit has put it on an exponential growth trajectory. Read more

Anshuman Magazine,Chairman & MD,CBRE South Asia Pvt. Ltd – response to Banks lowering new home loan interest rates

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By K. Ashwin Mob: 00919920183006 E-mail: indianshowbusiness@gmail.com

Mr. Anshuman Magazine, Chairman & MD, CBRE South Asia Pvt. Ltd., welcomed the move from banks lowering new home loan interest rates, within a day of RBI deciding to keep repo rates unchanged. He said, “This move is a positive signal for the economy as a whole, and the realty sector in particular. The very fact that RBI decided to keep repo rates unchanged despite persistent inflationary conditions is indicative of the Central Bank having moved beyond merely controlling inflation, and beginning to address larger economic growth, consumerism and investments.

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Quote of Mr. Shailesh Vaidya, President, IMC on RBI’s Second Quarter Monetary Policy 2013-14 Statement

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By K. Ashwin Mob: 00919920183006 E-mail: indianshowbusiness@gmail.com

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Quote of Mr. Niranjan Hiranandani, President, IMC on RBI’s Monetary Policy Review

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By K. Ashwin Mob: 00919920183006 E-mail: indianshowbusiness@gmail.com

IMC congratulates the RBI for having lowered the policy repo rate by 25 basis points from 7.5% to 7.25%. Even though we would have preferred a 50 basis points reduction, we do appreciate that the RBI has its own apprehensions which are based on a thorough grasp of the ground realities. We understand and respect them. Read more

Greater Bank unveils new logo in Diamond Jubilee Year; To unveil 24 X 7 banking through E-Lobby at all branches in 2012; Proposes to open new branches and offsite ATMs

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By Ashok Punatar E-mail: ashokpunatar@gmail.com Mob: 00919820746494

The Greater Bombay Cooperative Bank (“Greater Bank”), a leading Scheduled Urban Cooperative Bank in India to get all its branches and offices certified with ISO 9001:2008, unveiled its new corporate identity and logo in its 60th diamond jubilee year. Mr. S. Karuppasamy (Executive Director, The Reserve Bank of India) unveiled the new logo in the presence of Mr. Narendrakumar A. Baldota (Chairman, Greater Bank), Mr. BVR Sarma (CEO, Greater Bank), Directors of Greater Bank and other distinguished guests from the banking and business fraternity.

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