Public sector major Bank of Baroda has surprised the markets with 17 percent increase in quarterly net profit. The bank registered net profit of Rs1,362 crore during the first quarter compared to Rs 1,167 crore during the same period last year.
Bank of Baroda stock was up by more than a percent. The net interest income grew by 15 percent at Rs 3,328 crore. The non-interest income of the bank declined by 17 percent to Rs 1,024 crore during the first quarter.
The Reserve Bank of India (RBI) will start using consumer prices as the inflation benchmark for valuing the rupee against other currencies. Currently, it values the domestic currency on basis of wholesale prices.
The move is expected to make the central bank less tolerant of appreciation by the domestic currency.
Punjab National Bank (PNB) Chairman K. R. Kamath is reportedly the front-runner to replace Reserve bank of India (RBI) Deputy Governor K. C. Chakrabarty, who is going to retire next month.
Sources, with direct knowledge of the matter, said that Raghuram Rajan-headed search panel had zeroed in on a successor to Mr. Chakrabarty, and that Mr. Kamath was at the top in the reckoning.
The post will become vacant as Mr. Chakrabarty has expressed his intention to be relieved on 25th of April, around a couple of months ahead of his scheduled retirement on June 30.
Export-Import Bank of India (Exim Bank) on Monday raised $500 million via a dollar-denominated Regulation S (Reg S) bonds sale to investors in Asia and Europe.
The sale of Reg S bonds, which are offered to non-U. S. residents and qualified institutional investors under an exception to U. S. securities laws enacted in 1990, took place under Exim Bank's $6 billion medium term note (MTN) programme. It may be noted here that Reg S bonds don't enjoy the same legal protection as other bond issues.
Allowing more banks to import gold will lead to lower cost that will in turn lead to improvement in India's current account deficit (CAD), according to Reserve bank of India (RBI) Deputy Governor K. C. Chakrabarty.
Earlier this week, the central bank allowed some private-sector lenders to import gold, a move that is being seen as a precursor to relaxation in restrictions on imports of the precious yellow metal.
Declining inflation numbers have shown a ray of hope to the Indian economy as lower inflation can encourage the Reserve Bank of India (RBI) to slash key interest rates, which is essential to stimulate investors and boost the economy.
Helped by a considerable decline in prices of onion and potatoes, the wholesale price index (WPI)-based inflation slipped to 4.68 per cent in February this year. It was the lowest level of WPI-based inflation in the past nine months.
Public sector banks' non-performing assets (NPAs) or bad loans could rise further in 2014, Union Finance Minister P. Chidambaram said following a performance review meeting with PSU banks and financial institutions on Wednesday.
Mr. Chidambaram said PSU banks' NPAs, which at the end of March 2013 were at 3.84 per cent, would likely be a little higher in 2014. However, he added that NPA levels should be looked only at the end of a year as figures collected at the starting of the year could depict a very misleading picture.
The Reserve bank of India (RBI) intends to drag Consumer Price Index (CPI) inflation down to 8 per cent by January 2015 and further down to 6 per cent by January 2016, Governor Raghuram Rajan announced on Wednesday.
Mr. Rajan said that the central bank was adopting the Patel Committee's suggestion that the focus should be on CPI inflation rather than WPI (Wholesale Price Index) inflation. He stressed that the Patel Committee's suggestion for cutting inflation to 6 per cent was achievable without extreme hardship.
United Bank of India (UBI) Chairperson & Managing Director Archana Bhargava resigned from her post on Friday, just around a year away from retirement.
While Bhargava sought voluntary retirement scheme (VRS) citing health reasons, sources said that her rift with the government due to difference of opinion on classification of non-performing assets (NPAs) was the reason behind her departure.
India's largest lender, the State Bank of India (SBI) has said that it will slash its retail deposit rates by 0.50 per cent from 18 February, 2014.
The bank said in a filing with the stock exchange that the deposit rates for maturities of three to five years are cut by 0.25 per cent, the maturities for five years and above have been cut by 0.50 per cent. SBI is currently offering an interest rate of 8.75 per cent for three to five year deposits and 8.5 per cent on deposits for five years and longer.