BUSINESS
Loan EMIs to rise as RBI increases repo rate by 50 bps
Several banks have already raised their borrowing rates and some will again increase their rates after this hike by the central bank. "For any financial institution including NBFCs Cash in the Inventory. All NBFC must borrow money from the market and then lend to customers. Difference between borrowing cost and lending income is the profit for NBFC.
Policy rate hike to control inflation, 50bps the new normal with many central banks: RBI Governor
The policy or the repo rate is the interest rate at which the RBI lends short-term funds to commercial banks. The RBI hikes the rate generally during an inflationary time to curtail liquidity in the economy. According to Das, the overall liquidity in the system is upwards of Rs 5 lakh crore touching Rs 6 lakh crore. Das said the RBI's Monetary Policy Committee (MPC) takes a calibrated view of aspects like growth, demand and makes a balanced call in terms of rate hike.
Sensex rises more than 150 points; Nifty rises above 17,427 after RBI hikes 50 bps repo rate
By 1 p.m., Sensex was trading up 175.73 points or 0.30 per cent at 58,475.53, and Nifty was trading 45.75 points or 0.26 per cent higher at 17,427.75. Ultratech Cement, ICICI Bank, Bharti Airtel, Infosys, among others were major gainers of the Sensex during the afternoon trade.
Rupee gains 26 paise in afternoon trade to 79.20 against US dollar
In the morning trade, the rupee had appreciated more than 50 paise, but as soon as crude oil prices rises the gains has reduced. At the interbank foreign exchange, the rupee opened at 79.15 against the US dollar, then touched 78.94, registering a gain of 46 paise over the last close in the morning trade.
RBI hikes policy rate by 50bps to 5.4%
Announcing the decision of the Monetary Policy Committee (MPC) during its three-day meeting, Das said it has been decided to increase the policy rate by 50bps to 5.4 per cent with immediate effect. He also said the domestic economy is showing signs of broadening.
ED files chargesheet in Yes Bank-DHFL case
The ED had initiated a probe against Rana Kapoor, former CEO and MD of Yes Bank, and Kapil Wadhawan and Dheeraj Wadhawan, promoters of DHFL, on the basis of an FIR registered under the Indian Penal Code and Prevention of Corruption Act by the CBI. It is alleged that Rana Kapoor had entered into a criminal conspiracy with Kapil Wadhawan and others for extending financial assistance to DHFL by Yes Bank in lieu of substantial undue benefits to himself and his family members through the companies held by them.
UK will collapse into a year-long recession by the end of 2022'
Britain's big squeeze also got even worse after the Bank of England raised interest rates by 0.5 per cent to 1.75 per cent - the highest single rise since 1997 - adding 1,000 pounds-a-year or more to the average non-fixed mortgage in a new 'world of pain' for homeowners, Daily Mail reported. Food, fuel, gas and numerous other items are rocketing in price following the pandemic and the war in Ukraine - hitting record levels - but some economists have claimed that the BofE has been too slow to act as Britain careers towards recession.
Moody's upgrades Yes Bank's rating to Ba3 from B2, changes outlook to stable
"The upgrade of Yes Bank's BCA and ratings reflects the bank's planned equity capital raise, which will support its credit profile and strengthen its resilience against potential asset quality risks arising from headwinds such as higher inflation and tighter global financial conditions," Moody's Investors Service said in a release.
Germany sees 214% rise in Indian tourist in 2022 so far: GNTO
In its annual conference, GNTO, India shared the travel trend analysis globally and for the Indian market and showcased India as an important market for inbound travel to Germany with genuine hospitality to inspire potential Indian visitors. "As per the Nation Brands Index, Anholt Ipsos Nation Brands Index SM 2021, Germany ranks No. 1 on the Nation Brands Index for fifth time in a row.
India's FY23 fiscal deficit may come around 6.5%: SBI Ecowrap
"Furthermore, higher nominal GDP will provide a cushion, thereby fiscal deficit is likely to come around 6.5 per cent of GDP (Budgeted: 6.4 per cent of GDP)," the report said. Fiscal deficit for Q1 FY23 has reached 21.2 per cent of the annual target compared to 18.2 per cent in Q1 FY22. Tax revenue has been robust with record high GST revenues which have been possible because of increased compliance and higher economic activity.
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