Even as RBI Governor Shaktikanta Das announced a sharp hike in repo rate and CRR, hell broke loose and there was panic selling in the bond and equity markets.
RBI hikes repo rate by 40 basis points to contain inflation; CRR raised by 50 bps to suck out Rs 87,000-crore of liquidity in banking system.
Home, auto and corporate loans will get costlier as banks start hiking their lending rates despite RBI leaving repo rate unchanged.
HDFC Bank plans to add between 700 and 1,000 branches a year to improve its deposit franchise even as it awaits regulatory approval for the merger of its parent, HDFC Ltd, with itself.
Governments across world are working on digital currencies but pace has got accelerated after war in Ukraine and imposition of sanctions against Russia, writes Hargovind Sachdev from New York.
After a long spell of low interest rate regime, India may be inching to a higher loan pricing structure; this would include deposit rates and corporate loans.
RBI introduces standing deposit facility at interest rate of 3.75%. While this is set to suck out excess liquidity in system, RBI restores LAF corridor and marginal standing facility at 4.25%.
RBI has allowed existing banks to open digital banking units to offer products and services in urban as well as rural areas.
RBI’s approval will be a key monitorable as HDFC Bank will end up owning large stakes in the life-insurance, general-insurance and AMC businesses.
Merger of HDFC with HDFC Bank is like son taking over his father’s business when he grows older; deal to offer significant cross-selling opportunities.
HDFC Bank will become twice the size of ICICI Bank after it absorbs HDFC Ltd with itself, global rating agency S&P said.
HDFC Ltd, India’s largest housing finance company, is merging with HDFC Bank, the country’s largest private sector bank by assets, to create a behemoth.
Key reason for deciding to merge HDFC Ltd with HDFC Bank now is reduced regulatory gap between NBFC and a bank; other reasons include large balance sheet.
Axis Bank will acquire Citibank’s India consumer business for $1.6 bn, giving it access to 2.5 mn premium customer cards, a consumer lending portfolio of Rs 18,500 cr and a lucrative wealth management biz.
Rise in oil prices, dollar shortage and weak equity markets will put further pressure on rupee as it sinks to all-time low. Will RBI with high forex reserves be able to shield currency from deep fall?
