Volume - 1 No. - 1 Private Circulation only Editor in Chief: Dr. Kishore C.
Padhy Contributing Editor: TANYA SHOME PGDM-IVTH TERM
July 19, 2010
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‘RBI should make changes in base rate system'-The base rate
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system, a new system for benchmarking lending rates, came into effect from July 1. The new mechanism, which replaced the prime lending rate system, sets the minimum lending rate for banks. Most banks have set it at 7-8.5 per cent. Since base rate is a floor rate, it was unclear how loans given at concessional rates to industries that are being restructured or rehabilitated would be treated. It is well-known that the banking industry has restructured a large number of viable units, where the funding of over-dues has been considered at substantially low rates of interest. The present base rate regime is totally silent, and would hit this portfolio and borrowers perceptively. Currently, the base rates are proposed to be reset every quarter, irrespective of time and tenure of monetary policy instances of RBI. There needs to be parity in timelines. There should be similar timelines in addition to banks' own policy for resetting the base rate. This will ensure monetary policy transmission without gap. The base rate mechanism leaves out government borrowings, which plays a crucial role in determining interest rates.
SEBI cautions Central Bank of India on debenture lapses -SEBI
has 'warned' public sector Central Bank of India for violating regulatory norms. India sees three brands launches a day, but only 5 per cent survives. The authoritarian political system in China will last, because its goals are the ones the Chinese polity has sought ever since the opium wars.
5 per cent during 2010. which has agreed to infuse Rs 500 crore. The Fund had become positively optimistic. SLR-25%.5% to 8%. as on end-March 2010. stood at $261. Six countries give I-T dept data on NRI black money.5%.
Calcutta HC ruling paves way for BoR-ICICI merger Govt sets up small savings fund panel -headed by RBI Deputy Governor Shyamala Gopinath to review the structure of National Small Savings Fund (NSSF) Builders must disclose names of the lender banks: RBI
.Bank rate-6%. Citi bags Euro money award for bank restructuring for profit. ESSAR POWER to invest Rs 9. Present rates:. has put in a condition that VRL will transfer all its fixed assets to a special purpose vehicle (SPV) that will be predominantly owned by the foreign private equity firm.5%. Texas pacific group. FE best banks in India . complicates RBI call on key policy rates in July 27 review. and Best Innovator of the Year Axis Bank. CRR-6%.5% to 7%. Vishal Retail to soon become Shell Company.000 cr in Orissa plant. the IMF forecasted that the world economy would grow 2. RBI policy reviews to be more frequent-altered inflation dynamics. India's efforts at retrieving the black money its corrupt citizens have stashed abroad are being helped by some countries. Fall in IIP to 11.6 per cent. Savings bank rate-3.India’s external debt. 2011.9% of the GDP). Base rate-7. HDFC: The government has assured private sector lenders ICICI Bank and HDFC Bank that they will not be discriminated against vis-a-vis PSU banks even as their status has been changed to foreign-owned Indian-controlled lenders.
US sees 90 bank failures in just 7 months. Reverse repo rate-4%. RBI may announce sunset clause to help banks migrate to base rate model-The Reserve Bank of India is likely to announce a sunset clause with a deadline of June 30. The debt trap . A year ago. Mutual suspicion to mutual trust-it is an opportune time for the mutual fund industry and the regulator to sit together and work out changes in an atmosphere of trust. No foreign fear on ICICI.4 billion (18. for all loans in the erstwhile benchmark prime lending rate (BPLR) system to help banks migrate to the new base rate model.5% makes RBI task difficult-slippage in industrial output below expectation. Repo rate -5. Deposit rate.6. raising its global growth forecast to 4. change in policy interaction with financial markets prompt the move.FE Best Banker of the Year ICICI Bank. Canara bank to raise funds to the tune of Rs 600 cr.