Getting A Bank License Might Be The Simple Part

      India’s Reserve Bank of India (RBI) has given in-principle approvals to two new banks to start business. The licenses – for IDFC and Bandhan Finance – have come after a long wait. Many hopefuls, including some owned by industrial groups have been rejected, for now.   Getting a license is tough. But … Continued

Two More Banks Take Total to 91

The Reserve Bank of India (RBI) has issued ‘in-principle’ approvals to infrastructure lender IDFC and micro finance institution Bandhan Financial Services to start new banks in the country.   The two entities will be the latest to join the private sector bank club and have been given 18 months to meet the conditions set by … Continued

RBI Leaves Rates Unchanged

Reserve Bank of India (RBI) has kept key interest  rates – the reverse repo rate or rate at which it lends to banks at 8% and the repo rate or rate at which it accepts funds from banks at 7% – unchanged in its first-ever bi-monthly monetary policy statement.   In an attempt to improve … Continued

India Story: Industrial Growth At 0%, Inflation at 8%

With the financial year 2013-14 coming to a close, it could be a matter of great relief for everybody, including the Aam Aadmi, that the economy is not contracting sharply.   The latest data on industrial production is another signal towards a slowdown but there is no contraction or recession. Yes, we are indeed focusing … Continued

Can India Meet Growth Target of 4.9%?

India’s growth slowed down to 4.7% for the third quarter ended December 31, 2013 at Rs 14.8 lakh crore as against Rs 14.1 lakh crore in Q3 of 2012-13 at factor cost at constant (2004-05) prices. This was against a growth of 4.8% in the second quarter and 4.4% in the first quarter of the … Continued

Big Borrowers, Big Headache

Banking regulator Reserve Bank of India (RBI) is worried about the increase in bad loans in the sector. RBI came out with new guidelines to deal with non-performing accounts (NPAs), which would mean more pain for promoters of defaulting companies. RBI has reason to worry – almost 5% of the outstanding loans of the Indian … Continued

Has Gold Smuggling Really Increased In India?

Addressing tax officials on the Customs Day on 28th Jan, Finance Minister P Chidambaram said that there has been an increase in the smuggling of gold to the tune of about 1-3 tonnes every month ever since the restrictions were imposed on the yellow metal last year. IndiaSpend did a quick check to see the amount … Continued

RBI Hikes Rate, Continues Inflation Battle

The Reserve Bank of India (RBI) today hiked the repo rate – the interest rate banks pay when they borrow funds from the central bank – by 0.25% in its battle to control inflation.   The repo rate now stands at 8% per annum. The reverse repo rate, the rate RBI pays to commercial banks … Continued