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Bankers see 0.25% repo cut in monetary review
RBI, govt have contingency plans for Greece euro exit
RBI to infuse Rs 12k crore into
market to ease liquidity
IT spend in financial services to jump 17% to Rs 377 bn in 2012
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'Exports to hit $500 bn target by 2014'
Commerce & Industry Minister Anand Sharma (C) with CII past president Sunil Kant Munjal (L) and industrialist Rakesh Bharti Mittal at a conference on issues related to foreign trade policy organized by CII in New Delhi on Friday. — Tribune photo
Interest rates not too high to hurt growth: RBI
Gold posts 2nd biggest fall in 2012, down Rs 700
Airtel ties up with Opera Software
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Bankers see 0.25% repo cut in monetary review
Mumbai, June 8 Andhra Bank also expects a similar reduction in the policy rate, chairman & MD B.A. Prabhakar said. On if the bank will pass on the benefit in the case the RBI cuts rates to borrowers, he said the bank would first wait for a reduction in deposit rates which can bring down the cost of funds, before taking a call on the issue. Terming State Bank of India's decision to lower interest rates on select deposits by up to 0.25 per cent as a "good move", he said his bank will take a call on it after June 18, when the central bank will be reviewing its monetary policy. Tanksale, however, conceded that deposit mobilization continues to be a challenge in the present times. Prabhakar said his bank may tweak its deposit rates, especially those in the short-term baskets and the one-year maturity bucket, but did not give a timeline. Reserve Bank deputy governor Subir Gokarn, who heads the monetary policy department, has already hinted at a reduction in the key repo rate, due to the falling growth and crude prices. In its annual policy announcement on April 17, the RBI surprised all by cutting the repo rate by 0.50 per cent, as the signs of a slowdown became more pronounced. It had, however, said that its capacity to reduce the rates further was very limited given the elevated inflation scenario. Official data released last week pointed out that growth for Q4 ending March fell to a nine-year low of 5.3%.
— PTI SEBI chief worried over reform delays
SEBI chairman U.K. Sinha has joined senior RBI officials in calling for reforms in order to reverse the decline in India’s economic growth. Addressing an investor's conference in Mumbai he said: "Some of the reforms have long been pending .... one example being pension reforms. It has been years and years that some of these reforms ... are yet to come through”. Sinha went on to cite reform measures like FDI in retail which have been put in cold storage as major hurdles to improving investor sentiment.
— TNS |
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RBI, govt have contingency plans for Greece euro exit
Mumbai, June 8 "It (Greece exiting the
eurozone) will have some impact, adverse impact that is all I can say," he said at the Skoch business summit here, adding that if there is any problem arising from this, the government and the central bank would switch to their contingency plans. However, he did not disclose the details of any such plans. The Indian economy has already come under pressure from global economic slowdown and the eurozone crisis, leaving a bruising impact on the rupee, which has depreciated by about 20 per cent in the last one year. After a modest recovery in the last few days, the Indian currency again lost ground declining by 48 paise to 55.42 against the US dollar. The rupee depreciation has added to the inflationary pressure as the country is dependent on imports to meet over 80 per cent of its crude oil requirements. Besides, the landed cost of gold imports has also increased because of the rupee’s depreciation. India is the world's largest consumer of the precious metal which is an obsession with its large middle class. The eurozone crisis has also impacted capital inflows into the Indian stock market as the global investors are shuffling their portfolios looking for safer havens like dollar and gold. If Greece exits the
eurozone, as is widely expected, demand for the greenback may go up and there could be other debt problems.
— PTI |
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RBI to infuse Rs 12k crore into
market to ease liquidity
Mumbai, June 8 "Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct open market operations
(OMOs) by purchasing the following government securities for an aggregate amount of Rs 12,000 crore on June 12, 2012," it said in a statement. As part of the open market operations, the central bank will purchase government securities maturing in 2020 (bearing interest rate of 8.19 per cent), 2021 (8.79 per cent), 2022(8.08 per cent) and 2024 (7.35 per cent). The auction, it added, would be held through the multisecurity auction using the multiple price method. On May 25 the Reserve Bank had pumped in Rs 11,194.25 crore in the system through open market operations as against the notified amount of Rs 12,000
crore. The central bank has been using the open market operations tool, under which it purchases government securities from banks and other institutions to improve the liquidity situation.
— PTI |
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IT spend in financial services to jump 17% to Rs 377 bn in 2012
New Delhi, June 8 "The real spend drivers will be the Indian retail bankers, although all financial services sectors including insurance and securities are increasing IT spend as they build out their infrastructures," Gartner principal research analyst Derry Finkeldey said. Telecom equipment and services would represent the biggest spending category and is forecast to reach Rs 13,100 crore in 2012, up from Rs 11,300 crore in 2011. "Mobile is really top of mind for CIOs currently, and enterprise spend on devices is increasing and expected to grow by nearly 50% in 2012. There is also a corresponding growth in mobile network services, of nearly 30%," Finkeldey said. This focus on mobility is a global trend, but particularly pertinent to Indian FSIs as they are all focused on leveraging the high mobile penetration to bring banking services to a wider audience, he added. However, spending on software is expected to grow the fastest in 2012, with revenue totaling Rs 3,400 cr in 2012, up 28% from 2011 revenue of nearly Rs 2,700 cr. This is being driven by a very high growth in enterprise software applications such as financial and administration packages, and customer relationship management, Gartner said. |
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'Exports to hit $500 bn target by 2014'
New Delhi, June 8 "I believe we are on course to achieve the $500 billion target," Commerce & Industry Minister Anand Sharma said here at a function organized by the Federation of Indian Chambers of Commerce and Industry (FICCI). Sharma said although the traditional exports destinations — the US and Europe — are important, there is a need to focus on new markets like Africa, Latin America and Central Asia. The government has announced several incentives for exporters to explore new destinations under focus market and focus product scheme. Sharma also expressed concerns over widening trade deficit which has touched $185 billion in the last fiscal. In 2011-12, exports grew by 21% to $303.7 billion. The government has announced fiscal incentives, including interest subsidy to help exporters in the wake of global economic uncertainty. "I hope exporters will benefit from incentives announced in the foreign trade policy," Sharma added. — PTI |
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Interest rates not too high to hurt growth: RBI
Mumbai, June 8 "I don't think the interest rates are that high, or our policy rates are that high that they should significantly affect growth. Growth is being affected for a variety of reasons. We’re overplaying the interest rate aspect (for low growth). It may be one of the reasons," he told the Skoch summit here. Buttressing his point further he said, "I don't know how much growth sacrifice is due to lack of productivity, lack of efficiency, and how much is it due to inflation." At 6.5%, the economy slumped to the lowest rate in the past nine years in FY12, and many have blamed the RBI's tight monetary policy, coupled with the policy paralysis and lack of strong political will as the reasons for the poor show.
— Reuters |
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Gold posts 2nd biggest fall in 2012, down Rs 700
New Delhi, June 8
Earlier this year, the precious metal had lost Rs 920 on March 1.
In line with the general weakening trend, silver also dropped by Rs 1,745 to Rs 53,755 per kg on poor offtake by industrial units. Traders said selling pressure gathered momentum after gold declined and headed for its worst week in global markets as Fed chairman Ben S Bernanke dampened expectations for monetary stimulus. In London, gold fell by 1.3% to $1,569.52 an ounce and silver by 1.9% to $28.05 an ounce. On the domestic front gold of 99.9% and 99.5% purity tumbled by Rs 700 each to Rs 29,500 and Rs 29,300 per 10 grams, respectively. Gold had lost Rs 200 yesterday.
— PTI |
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Airtel ties up with Opera Software
New Delhi June 8 Opera Mini's unique proxy-server-based technology can compress data by up to 90% and decrease user's data transfer costs. Opera has agreements with 13 out of the top 30 operators globally and its Opera Mini browser is used by over 168 million users, the statement added.
— TNS |
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