India’s RBI to ‘Play it Slow’ on Defending Rupee, Axis Bank CEO Says
2 months, 1 week ago

India’s RBI to ‘Play it Slow’ on Defending Rupee, Axis Bank CEO Says

Live Mint  

-- India’s central bank is unlikely to mount a strong defense of the rupee despite the currency’s sharp depreciation, according to Axis Bank Ltd.’s chief executive officer. Chaudhry said he isn’t hopeful of major fiscal support measures in India’s annual budget scheduled to be presented next month, since the government is committed to reducing the fiscal deficit. “You need to allow for a slightly higher credit growth.” He said that while global events like a potential US-China trade war under a Donald Trump administration could impact growth, the onus will be on policymakers to work on reforms to boost the economy. Discussing the outlook for Axis Bank’s performance, Chaudhry said that he doesn’t expect deposit growth to “change dramatically,” unless liquidity returns to the system.

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History of this topic

Govt wants rupee stability; RBI may again aggressively defend the currency
2 weeks, 5 days ago

Govt wants rupee stability; RBI may again aggressively defend the currency

Live Mint  

Mumbai/New Delhi: The Reserve Bank of India is expected to continue defending the rupee, with the government expressing confidence that the central bank's strategic interventions would stagger the pace of slide, according to a senior official. There is no change in the forex policy of the central bank despite several quarters believing that under the new governor Sanjay Malhotra, RBI …

Rupee falls 5 paise to 87.11 against US dollar in early trade
3 weeks, 2 days ago

Rupee falls 5 paise to 87.11 against US dollar in early trade

The Hindu  

The rupee failed to sustain its gaining momentum and fell 5 paise to 87.11 against the US dollar in early trade on Thursday as a lower American currency and crude oil prices failed to boost sentiment amid volatile equity markets and foreign funds outflow. In the domestic equity market, the 30-share BSE Sensex was trading 20.53 points, or 0.03 per …

RBI to conduct $10 billion forex currency exchange to infuse liquidity in India’s banking system
1 month, 1 week ago

RBI to conduct $10 billion forex currency exchange to infuse liquidity in India’s banking system

Live Mint  

MUMBAI - The Reserve Bank of India will conduct a massive $10 billion three-year dollar/rupee swap auction next week to infuse durable rupee liquidity into the banking system, which has been reeling under large cash deficits, the central bank said on Friday. "The three-year maturity of the swap indicates that the RBI is looking at injecting more durable liquidity in …

RBI pumps in Rs 45 trillion in banking system since December to meet liquidity needs
1 month, 1 week ago

RBI pumps in Rs 45 trillion in banking system since December to meet liquidity needs

New Indian Express  

MUMBAI: The Reserve Bank has injected a whopping Rs 45 trillion into the banking system since the December 6 monetary policy review when it slashed the cash reserve ratio by 50 bps to 4%, releasing Rs 1.16 trillion into the system. Of the total, more than Rs 43 trillion of fresh liquidity has flown into the system between December 11 …

Rate cut not helping drive growth, focus should be on liquidity measures: Axis Bank economist
1 month, 1 week ago

Rate cut not helping drive growth, focus should be on liquidity measures: Axis Bank economist

Live Mint  

Mumbai, Feb 18 The Reserve Bank should focus on making liquidity easier rather than cutting rates if the intent is to drive growth, Axis Bank's chief economist Neelkanth Mishra said on Tuesday. Mishra said if the objective of the rate cut is to trigger more borrowings, the new loans are not going to get done at lower rate as the …

India rupee to take cues from dollar path, tariff reaction; bonds to eye liquidity moves
1 month, 1 week ago

India rupee to take cues from dollar path, tariff reaction; bonds to eye liquidity moves

Live Mint  

By Dharamraj Dhutia and Nimesh Vora MUMBAI, Feb 17 - The Indian rupee's direction this week will be shaped by the dollar's reaction to its recent correction and whether worries over U.S. tariffs continue to subside, while the bond market will be on watch for any further liquidity infusion measures by the central bank. That was largely due to the …

RBI to inject $16 billion liquidity boost into banking system next week amid tax outflows: Report
1 month, 1 week ago

RBI to inject $16 billion liquidity boost into banking system next week amid tax outflows: Report

Live Mint  

India's central bank, the Reserve Bank of India, is set to ramp up the liquidity in the nation's banking system through the infusion of $16 billion by next week amid the large tax outflows, reported the news agency Reuters. The central bank has doubled the amount of government securities that the nation aims to buy to $4.61 billion, based on …

Liquidity support is priority; rate cut a close call
1 month, 3 weeks ago

Liquidity support is priority; rate cut a close call

Live Mint  

The backdrop of the monetary policy committee meeting later this week is a complex one. So, the MPC must decide whether to stay cautious given the high retail inflation prints in recent months or deliver a rate cut relying on the RBI’s forecast of benign future inflation—overall, it seems to be a close call in February, rather than being a …

RBI’s ₹1.5 trillion liquidity boost: How will it help?
Trending News
2 months ago

RBI’s ₹1.5 trillion liquidity boost: How will it help?

Live Mint  

The Reserve Bank of India has announced a set of forex and money market measures that will collectively infuse ₹1.5 trillion over time, amid a clamour for liquidity from multiple bankers and money market participants. Average liquidity deficit in the interbank market crossed ₹3.3 trillion last week, thanks to heavy goods and services tax outflows. The liquidity deficit has been …

RBI to continue interventions in forex market, despite tight liquidity
2 months, 1 week ago

RBI to continue interventions in forex market, despite tight liquidity

Live Mint  

Tight liquidity will not bind the Reserve Bank of India’s hands in intervening to curb excessive rupee volatility in the forex market, said a senior official aware of the thinking at the central bank. While liquidity management will not be a constraint for RBI to intervene in the forex market, bankers believe that the central bank will have to infuse …

Finance ministry charts path to $5 trillion by FY29
2 months, 2 weeks ago

Finance ministry charts path to $5 trillion by FY29

Hindustan Times  

Unleashing the productive potential of micro, small and medium enterprises; streamlining regulatory obligations; ensuring land availability at reasonable price; and securing energy needs -- these are some of the measures that will “guarantee” further acceleration of India’s economic growth, according to a note prepared by the Union finance ministry. Last month, the parliamentary standing committee on finance led by senior …

Indian Banking Liquidity Deficit Hits Highest in Six Months
3 months, 1 week ago

Indian Banking Liquidity Deficit Hits Highest in Six Months

Live Mint  

-- The liquidity deficit in the Indian banking system hit the highest in nearly six months on advance tax payments by companies and likely dollar sales by the central bank to curb rupee volatility. The banking system cash deficit, as measured by banks’ borrowings from the Reserve Bank of India, was at 1.5 trillion rupees as of Monday, the highest …

RBI Is Said to Shore Up Banking Liquidity Before Rate Decision
3 months, 3 weeks ago

RBI Is Said to Shore Up Banking Liquidity Before Rate Decision

Live Mint  

-- India’s central bank has been shoring up banking system liquidity ahead of a key policy decision, having depleted it in recent days in its efforts to stabilize the rupee, according to people familiar with its transactions. The moves come at a time when the slowest pace of economic expansion in almost two years is mounting pressure on central bank …

RBI can spend $30 billion of forex reserves to defend rupee: Deutsche Bank
1 year, 6 months ago

RBI can spend $30 billion of forex reserves to defend rupee: Deutsche Bank

Live Mint  

Deutsche Bank Thursday said the Reserve Bank of India can spend up to $30 billion from the over $594 billion of forex reserves to defend the domestic currency and even though the country will be left sufficient reserves to take care of import bills for next ten months, reported PTI. The German brokerage said the Indian rupee is trading close …

Deposit of ₹2000 notes, rise in RBI dividends to improve short-term liquidity
1 year, 9 months ago

Deposit of ₹2000 notes, rise in RBI dividends to improve short-term liquidity

Live Mint  

There will be an improvement in short-term liquidity due to an increase in RBI dividends and deposit of ₹2,000 notes by banks till September, predicts India Ratings in its latest edition of the monthly credit market tracking report. The report highlighted that the Banking system liquidity declined as of 25 May 2023 to around ₹500 billion on average. “Decline in …

RBI may buy $18 bn of bonds to boost liquidity, says B. Prasanna of ICICI
1 year, 10 months ago

RBI may buy $18 bn of bonds to boost liquidity, says B. Prasanna of ICICI

Live Mint  

The Reserve Bank of India may buy nearly $18 billion of government bonds to replenish banking liquidity that’s expected to tighten later in the year, according to a report by Bloomberg. The central bank may cut the cash reserve ratio by half a point in the second half of the fiscal and start buying bonds in the December quarter to …

India Not Defending Rupee, Currency Can Take Care of Itself: CEA V Anantha Nageswaran
2 years, 6 months ago

India Not Defending Rupee, Currency Can Take Care of Itself: CEA V Anantha Nageswaran

News 18  

Chief Economic Advisor V Anantha Nageswaran on Tuesday said India is not defending the rupee and the Reserve Bank of India is taking necessary steps to ensure that the movement of the rupee is gradual and in line with market trends. “The RBI is making sure that whatever direction the rupee is moving in line with the market trends is …

Rupee falls to all time low of ₹77.93 against U.S. dollar
2 years, 9 months ago

Rupee falls to all time low of ₹77.93 against U.S. dollar

The Hindu  

The Indian rupee on Friday hit a record low against the U.S. dollar following flight of capital on account of Foreign Portfolio Investors pulling out of the equity market and likely outflow of dollar to pay for rising oil prices. At the inter-bank exchange, the Indian Rupee dipped 19 paise to 77.93 against the dollar compared with its previous close …

Loose monetary policy is worsening wealth inequality
4 years, 5 months ago

Loose monetary policy is worsening wealth inequality

Live Mint  

The size of the Atmanirbhar Bharat package announced by Prime Minister Narendra Modi in May was estimated to be about ₹20 trillion, or nearly 10% of gross domestic product. Thus, the actual payout from the Centre’s treasury, or the fiscal resources that would flow out, would only occur in cases of delinquency on these loans, which were presumably at least …

Rupee plunges 45 paise to 74.20 against dollar in early trade amid weak opening in domestic equities, foreign fund outflows
5 years ago

Rupee plunges 45 paise to 74.20 against dollar in early trade amid weak opening in domestic equities, foreign fund outflows

Firstpost  

The rupee opened weak at 74.10 at the interbank forex market and then fell further to 74.20, down 45 paise over its last close. Mumbai: The Indian rupee plunged 45 paise to 74.20 against US dollar in early trade on Monday tracking weak opening in domestic equities and sustained foreign fund outflows. Forex traders said investors are on tenterhooks amid …

Rupee down 5% against US dollar from July highs. It may fall further
5 years, 4 months ago

Rupee down 5% against US dollar from July highs. It may fall further

Live Mint  

India’s rupee is the only emerging Asian currency to weaken this quarter and its losses may gather pace as a report this week is forecast to show economic growth slid to a six-year low. The poor growth conditions may lead to lower capital flows and hence could be a significant negative for the currency.” India’s gross domestic product probably slowed …

Axis Bank back in the black with ₹1,505 crore profit in Q4
5 years, 11 months ago

Axis Bank back in the black with ₹1,505 crore profit in Q4

Live Mint  

Private sector lender Axis Bank on Thursday reported a net profit of ₹1,505 crore in the March quarter of FY19, as against a loss of ₹2,188.7 crore in the same period last year. Axis Bank’s other income, which includes core fee income, rose 26% y-o-y to ₹3,526.28 crore in the three months to March 2019. The bank’s gross non-performing assets …

RBI is a seat belt for liquidity, not the driver
6 years, 4 months ago

RBI is a seat belt for liquidity, not the driver

Live Mint  

The liquidity deficit of the banking system has widened in the last two months and is now estimated to be over ₹ 1 trillion. Some of the demands were that RBI should provide funds to NBFCs through a dedicated window, buy more government bonds from the market to infuse money and even cut the cash reserve ratio. Another drain on …

RBI to inject Rs12,000 crore liquidity on 15 November
6 years, 4 months ago

RBI to inject Rs12,000 crore liquidity on 15 November

Live Mint  

Mumbai: The Reserve Bank on Tuesday announced it will inject Rs12,000 crore into the system through purchase of government securities on 15 November. “Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of the following government securities under Open Market Operations for an aggregate amount …

Rupee at 74 to a dollar is still better than its peers, says Urjit Patel
6 years, 5 months ago

Rupee at 74 to a dollar is still better than its peers, says Urjit Patel

The Hindu  

On the day the rupee breached the 74-mark against the US dollar for the first time, RBI governor Urjit Patel on Friday reiterated that the domestic currency is still better than its emerging market peers and that the apex bank does not have a target for it. Admitting that the country has not been immune to global spillovers from external …

Liquidity conundrum: Govt, Reserve Bank of India have done their bit, but it isn't easy to bell the cat
6 years, 6 months ago

Liquidity conundrum: Govt, Reserve Bank of India have done their bit, but it isn't easy to bell the cat

Firstpost  

A CRR cut is required to infuse a big dose of liquidity which can actually also move the yields downwards if supported by OMOs The financial markets are in a state of flux. The borrowing programme for the second half of the year from the central government would be lower at Rs 2.47 lakh crore, and hence for the entire …

Rupee vs Dollar: Government, RBI vigilant on currency fall; Experts predict more pain ahead
6 years, 6 months ago

Rupee vs Dollar: Government, RBI vigilant on currency fall; Experts predict more pain ahead

ABP News  

Rupee vs Dollar: After the rupee touched a historic low mark of 72.69 against the US dollar, Indian government and the Reserve Bank of India has ensured that required measures will be taken to stop the currency depreciation. The government and the RBI will do everything to ensure that the rupee does not depreciate to ‘unreasonable levels’, the finance ministry …

'India’s Macro fundamentals remain resilient and strong', Jaitley allies market fears over depreciation in Rupee
6 years, 7 months ago

'India’s Macro fundamentals remain resilient and strong', Jaitley allies market fears over depreciation in Rupee

India TV News  

'India’s Macro fundamentals remain resilient and strong', Jaitley allies market fears over depreciation in Rupee "However India’s Macro fundamentals remain resilient and strong," he said in a series of tweets. In an attempt to ally market fears over falling value of Indian Rupee against US Dollar, Union Minister Arun Jaitley on Wednesday said that India’s foreign exchange reserves are comfortable …

Do not expect a rate change from RBI: Axis Direct
8 years, 7 months ago

Do not expect a rate change from RBI: Axis Direct

Firstpost  

Tomorrow, markets will be looking at how the RBI plans to manage liquidity, inflation and growth. While the markets broadly expect no change in rates - no cash reserve ratio cut or repo rate cut - a small segment of market participants expect a cut in the cash reserve ratio, said Nilesh Shah of Axis Direct in an interview to …

RBI to prevent undue rupee volatility
9 years, 7 months ago

RBI to prevent undue rupee volatility

Live Mint  

Mumbai: Reserve Bank of India deputy governor S.S. Mundra on Tuesday reiterated that the central bank would step in to prevent an “unruly or undue” volatility in the rupee. The deputy governor’s comments came amid a sharp fall in the rupee in the last couple of weeks, just a day after RBI governor Raghuram Rajan said that India has $380 …

India has adequate forex reserves: Montek
11 years, 6 months ago

India has adequate forex reserves: Montek

India TV News  

St Petersburg: India today said it has “adequate” foreign exchange reserves—at present USD 280 billion—to defend its currency amid global volatility and ruled out taking any external assistance unless there is a “radical” change in the situation. Planning Commission Deputy Chairperson Montek Singh Ahluwalia also said the rupee's fall this year has clearly overshot limits.“With 280 billion dollars in reserves, …

RBI takes steps to ease liquidity
11 years, 7 months ago

RBI takes steps to ease liquidity

The Hindu  

Worried over interest rates rising following its steps to support falling rupee, the RBI on Tuesday announced slew of measures to ease liquidity, including Rs 8,000 crore bond buyback, to ensure adequate credit flow to the productive sectors of the economy. The measures are aimed at easing liquidity conditions in the market which has worsened after RBI’s money tightening steps, …

RBI’s tightening measures can pull GDP to sub 5% level: Experts
11 years, 7 months ago

RBI’s tightening measures can pull GDP to sub 5% level: Experts

The Hindu  

The recent monetary tightening measures by the Central Bank is increasing the downside risk to the country’s growth outlook, which could fall to sub 5 per cent in the current financial year if these measures are prolonged, experts say. Meanwhile, Morgan Stanley in a research note, said that the recent monetary tightening and uncertain global capital market environment could mean …

Rupee defence: RBI risks forcing up borrowing costs for cos as economy slows
11 years, 8 months ago

Rupee defence: RBI risks forcing up borrowing costs for cos as economy slows

Firstpost  

India’s cash rate jumped, bond yields surged and banking stocks tumbled today after the RBI’s intensified defence of the beleaguered rupee raised concerns about the cost to the economy if the attempted rescue failed. “Though today’s auction were accepted at a higher rates, the sustainability of higher yields wouldn’t be acceptable in the subsequent weeks.” LONG-TERM PROBLEMS The rupee rose …

Perpetuating short-termism
11 years, 8 months ago

Perpetuating short-termism

The Hindu  

The measures announced by the Reserve Bank of India on Monday evening, aimed at restricting credit to banks and curbing speculation in the foreign currency markets, reflect the central bank’s growing helplessness in the face of the rupee’s free fall against the dollar. The measures announced include a Rs.12,000 crore open market sale of bonds, fixing a lower borrowing limit …

Reserve Bank hikes bank rate to 10.25% to shore up Indian rupee
11 years, 8 months ago

Reserve Bank hikes bank rate to 10.25% to shore up Indian rupee

India TV News  

New Dlhi, Jul 16: In a move to stem the continuing fall of rupee, the RBI last night came out with a slew of measures including hiking the lending rates for banks and sucking up of Rs 12,000 crore, to make the currency dearer. The measures came after high level meetings between the Prime Minister and the Finance Minister followed …

Can't arrest Re fall if driven by weak fundamentals, says RBI – India TV
12 years, 9 months ago

Can't arrest Re fall if driven by weak fundamentals, says RBI – India TV

India TV News  

Mumbai, June 1 : The Reserve Bank cannot arrest the rupee's decline if it is caused by weak fundamentals or global factors but can only take more calibrated steps in the forex market in such a scenario, top official said today. “If the rupee fall is due to fundamental weakness of the economy, or due to global factors, then the …

India May Face Its Worst Financial Crisis In Decades As Rupee Retreats
13 years, 3 months ago

India May Face Its Worst Financial Crisis In Decades As Rupee Retreats

India TV News  

Mumbai, Dec 5: India may face its worst financial crisis in decades if it fails to stem a slide in the rupee, leaving the Reserve Bank of India with a difficult choice over how to make best use of its limited reserves to maintain the confidence of foreign investors. Aggressive intervention would leave the central bank open to criticism that …

RBI reserves right to check rupee fall
13 years, 3 months ago

RBI reserves right to check rupee fall

The Hindu  

The Reserve Bank of India has asserted that it will not hesitate to use all available instruments to prevent downward rupee spiral “Usually RBI does not strongly intervene in the currency market to achieve specific exchange rate targets. However, in volatile market conditions that we see today, RBI intervention to keep markets orderly and prevent a downward spiral of rupee …

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