The PMC bank was put under "directions" by the Reserve Bank of India (RBI) last month due to weak financial health due to its exposure to near-bankrupt realty player HDIL, to which it has loaned over 70 per cent of its Rs 9,000 crore in advances.
The interest you earn from FDs and savings bank deposits will come down. New home loans will be cheaper, but existing home loan rates will not change immediately. The bank wants people to borrow more, and spend more.
Together the states are more important than the Centre in increasing India’s GDP. But RBI finds them cutting down expenditure and getting more indebted, which will hurt India’s growth and job creation.
Its commentary on the state of the economy and its outlook too has qualitatively changed — from being “optimistic” in April to expressing “concerns” in August and calling for “intensified efforts to restore the growth momentum” in October.
Rajnish Kumar, Chairman, SBI, said, “The 25-basis point rate cut coupled with an explicit policy acknowledgement of further rate cuts would ensure that fiscal and monetary policy work in tandem in arresting growth concerns.”
On September 23, the RBI had put restrictions on Punjab & Maharashtra Cooperative (PMC) Bank after it had found out financial irregularities, and under-reporting of loans given to real estate developer HDIL.
In this edition of the Idea Exchange, Former Chief Economic Adviser Arvind Subramanian talks about demonitisation, defends GST, explains the reasons why growth has not been robust and reflects back on his tenure as Chief Economic Adviser of India.
How the BJP and RSS are reacting to the Supreme Court deferring the Ayodhya case, why the RBI and the government are at loggerheads and what it means to have a statue worth almost Rs 3000 crores. All that and more in this week’s Eye for Detail.
Former governor of Reserve Bank of India Bimal Jalan talks about how he addressed the issues of transparency and accountability in financial transactions and governance in his new book, India Ahead: 2025 and Beyond.
Prime Minister Narendra Modi said the Congress party has no faith in the government, the CJI, the RBI or any international organisation that gives data on India's growth. He said it is because Congress has no faith in itself.
The Reserve Bank of India (RBI) Wednesday disclosed that almost 99 per cent of Rs 500 and Rs 1,000 currency notes which were withdrawn from circulation on November 8, 2016 has returned to the central bank, confirming what the government’s critics had been pointing out about the weak economic rationale for demonetisation. This also raises […]
Gross non-performing assets (NPAs), or bad loans, of state owned banks surged 56.4 per cent to Rs 614,872 crore during the 12-month period ended December 2016, and appear set to rise further in the next two quarters with many units, especially in the small and medium sectors, struggling to repay after being hit by the […]
During the 50-day demonetisation window-period numerous cases of illegitimate conversion of old Rs 500 and Rs 1,000 notes were reported at various bank branches, the Reserve Bank of India has centred its investigation on unusual transactions at bank branches that include those who got demand drafts (DD) made during that period using old currency notes […]
After RBI shot down the Election Commission’s proposal to relax the weekly withdrawal limit for those contesting the Assembly elections, EC reminded the central bank that it is “imperative” that its directions are “complied with” during poll season. Upset about the “cursory manner” in which the RBI had dealt with its request and asking it […]
The government is resigned to the prospect of only about Rs 75,000 crore in demonetised Rs 500 and Rs 1,000 notes not returning to the formal banking system, a top official said. When the decision to scrap these high-denomination notes was taken, the government had estimated that up to Rs 3 lakh crore or almost […]