Contify Banking presents a summary of the most important news stories that made maximum impact on Tuesday from its banking, finance, insurance and economy portal.
FULL COVERAGE: RBI Policy: Status quo on repo, CRR but cuts SLR; keeps anti-inflationary stance
New Delhi: The Reserve Bank of India Tuesday refrained from following its global peers in lowering policy rates to support faltering economic growth and chose to maintain its anti-inflationary stance, dimming hopes of monetary easing in the near term. However, the central bank surprisingly cut the statutory liquidity ratio with effect from August 11 by 100 basis points to 23% from 24% as a way to boost investment by encouraging banks to divert some funds towards more productive private sector projects. India's top lender State Bank of India hinted that lending rates may ease following availability of funds from the SLR cut, while ICICI Bank differed. Industry welcomed the SLR cut, while most had already factored a status quo on the repo rate front. Markets fell after the announcement but recovered towards the end of the session.
RBI POLICY: Keeps repo rate, cash reserve ratio unchanged on inflation worries, but cuts SLR
New Delhi: The Reserve Bank of India Tuesday kept its repo rate and cash reserve ratio unchanged for the second time in a row in line with street expectations, saying that reduction in policy rates at this point could aggravate already high inflation rather than bolster economic growth, which fell to a nine-year low in the March quarter.
RBI POLICY: Keeps anti-inflationary stance but aims to boost liquidity to productive sector
New Delhi: The Reserve Bank of India Tuesday maintained its hawkish stance to anchor inflationary expectations with an aim to support a sustainable growth over the medium term, indicating the central bank may not cut policy rates in the near term despite significant slowdown in economic growth.
RBI POLICY: SBI sees room to ease lending rates after SLR cut, ICICI Bank differs
New Delhi: India's two major lenders Tuesday gave contrasting views on the lending rate outlook after the Reserve Bank of India cut the statutory liquidity ratio by 100 basis points to 23%, with state-run lender State Bank of India saying it sees retail lending rates moderating while private sector lender ICICI Bank saying it is too early for banks to cut such rates.
RBI POLICY: Raises FY13 inflation projection by 50 bps to 7% on weak monsoon, rupee fall
New Delhi: The Reserve Bank of India Tuesday raised its baseline projection for wholesale price index inflation to 7% for the current fiscal year 2012-13 from 6.5%, citing deficit in crucial monsoon rains, elevated global crude oil prices and rupee depreciation.
RBI POLICY: Subbarao says drought-related expenses, unadjusted fuel cost to pressurize fiscal gap
New Delhi: The Reserve Bank of India Governor D Subbarao Tuesday said that drought-related expenditure due to poor monsoon rains and oil prices sold at discounted rates will put pressure on the country's fiscal deficit, which faces the risk of expanding beyond the government-set target in this financial year 2012-13.
RBI POLICY: Cuts FY13 econ growth forecast to 6.5% from 7.3% on weak monsoon, industrial output
New Delhi: The Reserve Bank of India Tuesday revised the country's economic growth projection downwards to 6.5% for the current financial year 2012-13 from 7.3% earlier, due to deficit in the crucial monsoon rains, weak industrial activity and slowdown in global economy.
RBI POLICY: Rangarajan says right balance struck by holding repo steady, cutting SLR
New Delhi: The Reserve Bank of India has struck the right balance between the need to check inflationary pressure by keeping the repo rate unchanged and offer stimulus to flagging economic growth by cutting the statutory liquidity ratio, Prime Minister's Economic Advisory Council Chairman C Rangarajan said Tuesday.
RBI POLICY: Retains non-food credit growth forecast at 17%, money supply growth at 15%
New Delhi: The Reserve Bank of India Tuesday retained its projection for outstanding non-food credit growth of scheduled commercial banks at 17% for the current financial year 2012-13.
India's Apr-Jun fiscal deficit at 37.1% of 2012-13 budget estimate
New Delhi: India's fiscal deficit in the Apr-Jun period at Rs 1.9 trillion crossed 37.1% of the current financial year 2012-13's budgeted estimate, government data showed Tuesday.