Some strategists said the RBI's interventions prevented the rupee from falling further.
With limited sales likely over the next few months owing to the coronavirus pandemic and its impact on the global economy is expected to pose a key challenge for residential real estate's liquidity and financing options.
Some of the private banks witnessed 3-10 per cent reduction in their deposit base since the imposition of the moratorium on Yes Bank.
Blackstone, Apax and Carlyle among funds tapped; board seats, rights to be negotiated.
RIL announcement comes a day before the second instalment of TLTRO scheduled today.
Even the steps like three-month moratorium on EMI payments offered by banks to borrowers hit by Covid-19 lockdown are not providing any income protection as they will have to bear the extra cost of interest charged by lenders and a longer repayment period.
CD rates have fallen up to 275 bps since Friday after the RBI announced liquidity injection of Rs 3.74 lakh crore into the system in an unscheduled bi-monthly policy announcement.
The Reserve Bank of India (RBI) has rejected requests for standstill in asset classification from banks, dashing the hopes of lenders as well as companies seeking to avoid the defaulter tag.
States’ short-term borrowing limits have been increased by as much as 30% as they face pressure on revenues with economic activity coming to a halt and the transfers from the Central government also getting crushed due to lower Goods and Services Tax collection.
Lenders do not want any borrower who makes use of the moratorium to fall into the category of a non-performing loan because of having missed payments in the previous two months – January and February. A loan gets classified as a bad loan if the interest or principal is overdue 90 days.
CMs seek relaxation in state fiscal deficit limit to deal with additional spending, revenue fall due to Covid-19. Under the fiscal responsibility and budget management (FRBM) act, the states are mandated to keep their fiscal deficit under 3% of their respective gross state domestic product (GSDP).
Lenders with higher share of asset classes such as microfinance, commercial vehicles and small companies will be more vulnerable as their repayment ability depends on immediate cash flows.
In a statement, the RBI said presently value of goods or software exports made by the exporters is required to be realised fully and repatriated to the country within a period of 9 months from the date of exports.
These lenders -- both banks and non-banks -- with sizeable loan exposure to NBFC-MFIs have also deducted the installments ignoring the request for moratorium. They said the policy on moratorium is still a work under progress.
FIEO has asked the government to declare the complete supply chain, including labour required for loading, transport of goods, courier services and port facilities, as essential service. Manufacturer-exporters have sought permission to start manufacturing and fabrication work after completion of the lockdown period.
In just one month, dollar-rupee volatility levels have quadrupled from 4% to 16% levels.
Party spokesman Manish Tewari made this demand to the ministry amid reports that many banks were proceeding to follow the regular EMI deduction schedule despite the RBI’s nod for deferring them for three months.
The directions assume significance as they come amid the COVID-19 pandemic, where the senior citizens have been marked out as the most vulnerable and advised against stepping out of their homes as the country fights to limit the impact through radical measures like a three-week lockdown which is underway.
The country is under a three-week lockdown starting March 25 and the number of cases infected with the virus is rising steadily. The RBI had announced a moratorium under which borrowers of all the term loans were given a breather from repayments for three months.
"The central government has re-appointed B P Kanungo as deputy Governor, Reserve Bank of India for a further period of one year with effect from April 3, 2020, or until further orders, whichever is earlier, upon completion of his existing term on April 2, 2020," the RBI said in a release.
Some lenders appear to be flouting the Reserve Bank of India's (RBI) directive to banks to offer moratorium to borrowers on repayment of loans for the month of March.
Amid a subdued demand scenario in the domestic as well as the international markets, intensifying competition and lags witnessed in the clearance of export incentives, most players across the sector are expected to close FY20 with muted sales growth and moderation in profitability and liquidity.
Sunil Mehta, Chief Executive, Indian Banks’ Association (IBA)answers some common questions regarding the 3-month moratorium on loans announced by the Reserve Bank of India
Borrowers have been advised to give instructions in advance to stall the debit, even if they have no money because the bank where they have their savings account might charge them for failure of standing instruction.
The RBI announced that all lenders can freeze repayments on term loans outstanding March 1 and suspend interest payments on working capital facilities for three months. While accumulated interest can be paid later, the loans won't be in default. However, this isn't enough, said RAI.
Fitch Solutions said an easing of inflation back within the RBI's 2-6 per cent target range will provide room for the RBI to ease monetary policy further over the course of the year to support the economy.
In the letter, the ministry said the power ministry has recently issued instructions providing for a moratorium to distribution companies or discoms for making payments to electricity generating companies in the wake of COVID-19 outbreak and the following nationwide lockdown.
Investors looking for higher returns post the sharp cut of interest rates in small savings products and bank deposits by up to 140 basis points could turn to banking and PSU debt funds.
For those in the high tax bracket, if they hold these funds for more than three years, these products will also get indexation benefits, which will significantly improve the post-tax returns.
On what kind of expenditures that GoI must undertake, there is a plethora of advice.
RBI fires the daisy cutter but absence of large fiscal intervention is a big hole.
Siddharth Bothra, Senior VP and Fund Manager, Motilal Oswal Mutual Fund, listed various investments and largest holdings to support his claim.
RBI has offered this option to mitigate the burden of debt servicing brought about by disruptions on account of COVID 19 pandemic. The bank's managing director and CEO Sanjiv Chadha said there are some cases where instalments have already been deducted because the RBI instructions came in over the last few days while the applicable period is from March 1, 2020.
Here is a look at the details Kotak Mahindra Bank's moratorium on loan EMIs. These are details as published on the bank's website.
As the RBI pumps in more cash into the banking sector, deferring or relieving the MSMEs of loan repayments could come as a welcome move. Most businesses are looking for financial support from the government and doing this can help them cope with cash flow problems.
The accrued interest will be collected by the lender in the form of additional EMIs.
Possible beneficiaries could be traditional banks as investors look to shed risky assets.
The highlights of the seventh bi-monthly monetary statement for 2019-20 by the RBI amid COVID-19 pandemic.
RBI has just delivered the biggest rate cut, bringing the repo rate to an all-time low of 4.40%. It has also cut the CRR by 100 basis points to unlock Rs 1.37 lakh crore primary liquidity in the banking system and allowed banks and other lending institutions to extend loan repayment schedules and moratorium by three months.RBI stimulus: Which sectors will gain the most?
There are a variety of debt mutual fund options, each suited for the needs of different investors. You can use debt funds to save for your child’s annual education expenses. Or save up enough to pay the down payment of your house next year.
Here is a look at the details Punjab National Bank's (PNB) moratorium on loan EMIs. These are details as published on the bank's website.
Experts though have called on the government to consider a three-month moratorium on operators’ revenue-share commitments for the April-June quarter FY21, which would be more significant relief for the debt-laden telecom sector that is currently reeling under the impact of the adjusted gross revenue (AGR) payments crisis.
“At this point of time, one can do nothing except curtail costs and postpone capex plans. Those are the only immediate solutions we have. We are watching the markets closely and taking stock,” said a top official at a leading Indian conglomerate based in Mumbai.
BofA said RBI raising the ceiling for FPI investment in government bonds can help raise forex cover.
The meeting between the Finance Ministry and Reserve Bank of India (RBI) will be held through video conferencing for the first time as there is lockdown across the country. As per the Budget, the government plans to borrow Rs 5.36 lakh crore from the market in 2020-21, higher than the Rs 4.99 lakh crore estimated for the current financial year.
With its latest round of announcements, the RBI will be injecting Rs 3.74 lakh crore into the country's financial system. These measures come just hours after Moody's cut India's growth forecasts for 2020 calendar year to 2.5% from 5.3%.
Some of India’s most highly-rated companies have had to delay bond offerings.
The Reserve Bank of India slashed interest rates on Friday, following other central banks that have taken emergency measures to counter the economic fallout from the fast-spreading coronavirus pandemic.
Describing the RBI's decisions, including lowering the repo rate, as progressive and timely, BJP President JP Nadda said that its announcements would help the middle class and give strength to the economy amid a 21-day nationwide lockdown to combat coronavirus.
The problem with this crisis is, no one knows when it would be over. Even the RBI hopes the pandemic will fizzle out in three months, but that time frame is up in the air. In such a scenario, is the period of three months enough?
This massive cut has brought down repo rate to 4.4%, which is the lowest ever.
Banks will now have discretion in deciding the limits on working capital, with RBI saying that no payment miss should be considered a default and reported to credit information companies.
Nearly all digital channels operated by NPCI such as UPI, IMPS, Fastag and Aadhar Enabled Payment System (AePS) recorded reduced traffic in March; only BBPS bucks the trend and posts higher volumes.
The government said it will borrow Rs 4.88 lakh crore in the first half of FY21, sticking to the estimate in the budget presented before the coronavirus outbreak, and promised to do everything needed to meet the demands of the economy.
Issuing the detailed instructions on the moratorium announcement later in the day, the RBI said, "The instalments include payments falling due from March 1 to May 31 such as the principal and/or interest components; bullet repayments; equated monthly instalments; and credit card dues."
RBI on Friday announced measures to inject Rs 3.74 lakh crore into the banking system.
The central bank is not directly purchasing corporate bonds of large enterprises and major non-bank finance companies (NBFCs), as is par for the course in the mature markets. Instead, RBI has announced long-term repurchase obligations or repo in government securities with banks, so that the latter can then use the liquidity available to subscribe to corporate bonds or commercial paper or debentures.
Analysts and economists welcomed RBI's better-than-expected measures, yet the stock market did not seem to be too enthused. Four analysts do the post mortem...Did RBI rate cut not go down well on D-Street?
The RBI today announced a bazooka for borrowers, giving them a three-month moratorium on loan repayment.
Pawar, who is also the Maharashtra's finance minister, said the Central bank should issue clear instructions regarding the three-month moratorium. "Banks will not heed just requests. The RBI decisions announced today will partially help revive the economy, which is affected by the coronavirus outbreak," he said.
The RBI cut repo rate to 4.4% and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4%. NAREDCO President Niranjan Hiranandani said the RBI's move to pump fresh liquidity in the system will certainly help to mitigate the stressed cash flow and debt pressure in the economic system.
RBI Governor Shaktikanta Das predicted a big global recession and said India will not be immune. It all depends how India responds to the situation, he said. Global slowdown could make things difficult for India too, despite some help from falling crude prices, Das said, adding food prices may soften even further on record crop production.
The RBI seems to labour under the delusion that banks respond to an offer of funds with the same alacrity shown by the average Malayali male towards a glass of decent whisky placed before him. If the banks did not snap up debentures, commercial paper and other debt securities offered by private companies in the recent past, why would they develop a new taste for private company debt now?
Commerce and Industry Minister Piyush Goyal on Friday said decisions of the RBI will provide much needed relief to people and businesses.
The Reserve Bank of India's (RBI) monetary policy committee trimmed key policy rate by 75 basis points to 4.40 per cent.
Here is a look at the details of the country's largest lender, State Bank of India's (SBI) moratorium on loan EMIs. These are details as published on the bank's website.
RBI on Friday announced delivered a major policy rate cut and unveiled several other measures to flood the market with cheaper funds in a bid to mitigate the pain of the Coronavirus-induced lockdown of the economy. The measures came hours after Finance Minister Nirmala Sitharaman had unveiled Rs 1.7 lakh crore relief package for the poor to help them tide over the disruption. However, the measures did not seem to have impressed equity markets. Though analysts and economists gave them a thumbs-up. Here is how Abheek Barua, Chief Economist & Executive Vice-President, HDFC Bank reacted to the RBI policy.RBI's bazooka: Here's how HDFC Bank's Abheek Barua broke it down
Govt notified the amalgamation of 10 state owned banks into four as part of its plan to create stronger PSBs.
The RBI cut the Cash Reserve Ratio by 100 basis points to 3 per cent to boost liquidity.
Market borrowing is challenging in the current environment, a senior finance ministry official said.
Cost of borrowing for MSME is in a sweet position at this point, says MD & CEO, PNB.
Repo provided for lending to NBFCs, HFCs is a welcome move, says VC & CEO of HDFC.
In the past, experts have expressed concern about the NDF market - till now inaccessible to Indian banks - as among the measures which drive the rupee movement.
Reserve Bank Governor Shaktikanta Das on Friday said about Rs 3.74 lakh crore liquidity on aggregate basis will be infused into the financial system to deal with the COVID-19 pandemic.RBI to infuse Rs 3.74 lakh cr liquidity into financial system
“Given this heightened volatility, unprecedented uncertainty and extremely fluid state of affairs, projections of growth and inflation would be heavily contingent on the intensity, spread and duration of COVID-19. Precisely for these reasons, the MPC refrained from giving out specific growth and inflation numbers,” Reserve Bank of India Governor Shaktikanta Das said.
Reserve Bank Governor Shaktikanta Das on Friday said about Rs 3.74 lakh crore liquidity on aggregate basis will be infused into the financial system to deal with the COVID-19 pandemic.
Here's a look at what top economists and experts have to say about the rate cut:
India yesterday unveiled a Rs 1.7 lakh crore spending plan to curb the impact of the virus outbreak.
The RBI said on Monday it was introducing a new category called the "fully accessible route" for foreign investors.
The central bank also announced targeted LTROs (TLTRO) at monetary policy review.
Only way to solve the virus crisis is through a global coordinated solution, says Head Economist of Emerging Markets, JP Morgan.
In the sphere of economy, businesses showed tentative signs of limping back to normality even as supply bottlenecks continued to hinder availability of everyday items across the country.
"We have decided to pass on the full benefit of the recent RBI's policy rate cut of 75 bps to our borrowers covered under external benchmark-linked product of repo-linked lending rate (RLLR)," PNB said in a statement.
Axis Bank’s CDs traded as high as 7.75 per cent before RBI announced an unscheduled bi-monthly policy last Friday. These instruments are now trading in the range of 3.90-5.90 per cent across maturities running up to nine months.
The central bank received bids for Rs 39,529 crore against Rs 15,000 crore notified by the RBI.
The RBI had announced a 3-month moratorium on loan repayments in the wake of COVID-19 crisis for dues to be paid between March-May 2020 and left it to the bank to implement the same. A slew of state-run banks have gone for an "opt-out" option where the repayments automatically get deferred unless a customer informs of her willingness to pay.
Here is a look at the details of ICICI Bank's moratorium on loan EMIs. These are details as published on the bank's website.
Shares of Indian Overseas Bank traded 1 per cent down in trade at 11:10 am on Wednesday .
Here is a look at the details of HDFC Bank's moratorium on loan EMIs. These are details as published on the bank's website.
Modi’s government needs inflows to fund a $22.6 billion stimulus package.
For bankers, the approaching summer will not only bring a steady rise in temperature, but also branches and offices of the banks will have to face a lot of heat in meeting the tough challenges, in the execution of plans and guidelines announced by regulatory and monetary authorities, in the background of a countrywide lockdown and an acceleration in the spread of COVID 19 with increasing fatality.
The merger of United Bank of India (UBI) and Oriental Bank of Commerce (OBC) with Punjab National Bank has made it the second-largest state-owned bank.
Two large state-run banks are said to have subscribed to these money market instruments.
Finmin highlighted the need for relief measures as individuals & businesses face loss of income.
Lenders like Punjab and Sindh Bank, PNB, Canara Bank have announced EMI loan deferment via Twitter.
Japanese brokerage firm Nomura also sees the lockdown impacting growth recovery.
India aims to borrow Rs 4.88 lakh crore in the period, nearly 63% of its total annual borrowing plan.
Equity benchmark index Sensex erased early sharp gains to close lower by 131 points on Friday, snapping its three-day rising streak as concerns over an impending recession heightened after the RBI said the projected annual growth was at risk due to the COVID-19 outbreak. After opening significantly higher, the 30-share BSE barometer gave up all the gains to end 131.18 points or 0.44 per cent lower at 29,815.59. It hit a high of 31,126.03 and a low of 29,346.99 in day trade. On the other hand, the broad-based NSE Nifty closed 18.80 points, or 0.22 per cent, higher at 8,660.25.Sensex snaps 3-day rally, dips 130 points despite RBI rate cut
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