E-PaperIndia Liquidity Crisis News
RBI’s second dollar swap auction fetches bids worth $18.65 billion
RBI accepted bids at a premium of ₹8.38 at at an annualized rate of 4.01% from authorized dealers and paid them rupees in returnThe central bank says it will purchase govt securities against infusing liquidity worth ₹12,500 crore through OMOs
2 min read24 Apr 2019Opinion | The ‘Das put’ and how risk capital works
Sensex, Nifty and and the Rupee have risen sharply since RBI announced its $5 billion dollar-rupee swap. Has the move given some players a special advantage?
2 min read24 Mar 2019For housing finance companies, FY20 looks as bad as FY19: Icra report
Housing finance companies (HFCs) are expected to report a 13-15% credit growth in FY19, which will inch up to 14-16% in FY20Gross NPAs of the home loan segment will increase to up to 1.3% in the medium term from the present 1% levels, says Icra
2 min read24 Mar 2019NHB proposes to ease CAR of housing finance firms to 15% by March 2022
CAR for housing finance firms currently stands at 12%, which will be increased by 1 percentage point over the next three yearsNational Housing Bank has also reduced borrowing limit of HFCs from 16 times of net owned funds to 12 times by March 2022
2 min read6 Mar 2019Why mutual funds are running away from risk-free government bonds
Mutual funds have been net sellers of government bonds since the beginning of 2018, and selling only intensified after IL&FS crisisFaced with redemptions, the only way for debt funds to quickly raise cash is to sell the most liquid asset—government bonds
2 min read4 Mar 2019Pressure on private bank NIMs arrested, but scope of improvement limited
RBI data shows net interest margins (NIMs) of private banks is arrested and that margins can gradually improveBut an easing liquidity crisis and NBFCs returning to health can bring back the threat on private bank NIMs
1 min read27 Feb 2019NCLAT order on IL&FS rewards imprudence, ignorance at banks
NCLAT's IL&FS order encourages banks to extend and pretend, an exercise that landed them in the current toxic loan soup in the first placeNow, if RBI does nothing, banks that proactively provided against IL&FS loans in the previous quarter will feel short-changed
2 min read27 Feb 2019Banks, NBFCs ignored RBI caution on loans against pledged shares
Banks accounted for 3.11% of all pledged shares by value and NBFCs 12.79% at the end of December 2014The percentages shot up to 14.47% for banks and 39.59% for NBFCs by the end of December 2018
3 min read21 Feb 2019RBI bond purchases point to a lighter intervention in India's forex market
Reserve Bank of India (RBI) has committed to buy ₹37,500 crore worth of bonds in FebruaryWhile that is lower than the ₹50,000 crore RBI bought in the previous three months, OMOs remain high
1 min read19 Feb 2019Delhi NCR real estate market hit by NBFC liquidity crisis, Bengaluru thrives
Slow property sales in Delhi NCR is making it difficult for developers to maintain pace of construction, plan launches and repay loansBengaluru, with steady property sales and credible developers, has attracted significant capital despite the liquidity crisis
3 min read15 Feb 2019Popular Topics
Budget
The Union Budget contains details about the estimated receipts and the expenditure of the government for a particular fiscal year. The Budget is allotted for the upcoming fiscal year, which runs from 1st April to 31st March of the next year. Here is a quick guide on how the Union Budget is prepared