The negative interest rate policy adopted by Japan and some European countries in the last decades has failed, too.
Masala bonds help companies to raise overseas funds without taking foreign currency risks unlike in foreign currency denominated debt funding.
RBI has also thrown open the overseas rupee-denominated long-term Masala bonds for banks to shore up their dipping capital and finance infrastructure and affordable housing.
The bank has decided to open about 300 branches to add to its current tally of 700 in the next one year and a majority of these will be in urban pockets.
The market would expect firmness in liquidity management so that lenders have enough ammunition when credit demand picks up with better economic outlook.
The bank has called an extraordinary general meeting on September 7 to get shareholders’ approval for the proposed capital infusion at the prescribed prices.
With Parthasarathi Mukherjee at the helm, the bank has built a senior team of several senior bank executives, who came from bulge-bracket lenders,
Purchases made through cards and loans accounted for 55-60% of all white goods and smartphones bought during Independence Day sales in large cities for the first time.
The company also intends to invest in manpower and technology which would in turn bring down operational cost and help reduce lending rate.
Profit before tax fell 30% at Rs 810 crore compared with Rs 1,162 crore in the year ago period. Total income fell too at Rs 4,727 crore from Rs 5,169 crore.
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