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SBI projects India's FY25 GDP growth at 6.3%, lower than RBI's revised 6.6% forecast. The first two quarters averaged 6.05% growth. RBI, after initially increasing its projection, lowered it due to balanced economic risks. A CRR reduction will inject ₹1.16 lakh crore into the banking system, potentially improving banks' net interest margins.from Business News: Business News, Business News Today, Latest Business News, Stock Markets, Financial News, India Business & World Business News https://ift.tt/ZQjfIqV
The Reserve Bank of India (RBI) maintained its policy rate at 6.5% but lowered the economic growth forecast for 2024-25 to 6.6% from 7.2%. A CRR cut to 4% will release ₹1.6 lakh crore for banks. The RBI acknowledged a recent economic slowdown but anticipates a recovery driven by festive demand and improved agricultural output.
The Reserve Bank of India (RBI) has raised the interest rate ceiling on Foreign Currency Non-Resident (Bank) or FCNR(B) deposits to attract more foreign currency. For deposits maturing in one to less than three years, the new ceiling is the overnight Alternative Reference Rate (ARR) plus 400 basis points, effective until March 2025.
The Reserve Bank of India (RBI) raised its inflation forecast for fiscal year 2025 to 4.8% due to a surge in food prices. Retail inflation hit 6.2% in October. While near-term inflation remains high, the RBI expects moderation in the fourth quarter due to easing vegetable prices and strong harvests. The RBI maintained its benchmark repo rate at 6.
RBI MPC meeting: The Reserve Bank of India (RBI) maintained the repo rate at 6.5% while reducing the Cash Reserve Ratio (CRR) to 4%. The RBI acknowledged a growth slowdown, revising the GDP forecast to 6.6% and increasing the inflation estimate to 4.8%.
The Reserve Bank of India has partially reinstated ATM cash retraction to combat new ATM fraud involving fake slot covers. This feature, disabled in 2012, allows ATMs to retrieve uncollected cash, protecting customers.
The Reserve Bank of India has increased the UPI Lite transaction limit and the total wallet capacity. This change aims to boost digital payments, especially in areas with poor internet connectivity, by enabling faster offline transactions without a UPI PIN for small purchases.
Poonawalla Fincorp Ltd., led by CEO Arvind Kapil, plans to double its workforce and expand into new lending sectors, aiming to reach $17.7 billion in assets within five years. The company will add branches and offer loans for gold, used cars, and education, focusing on salaried employees at major Indian companies despite recent increased scrutiny on shadow banks.
Pakistan's external debt reached $130.85 billion in 2024, with China and Saudi Arabia as the largest bilateral creditors. The World Bank report highlights Pakistan's high debt-to-export ratio and substantial debt servicing burden, exceeding 40% of export earnings. The nation faces a $100 billion repayment challenge over the next four years, while navigating an IMF program.
SBI has alerted its customers about scammers posing as CBI or IT officials to extort money. These scammers use fake narratives and staged evidence to convince and frighten victims. Consumers are advised to verify identities, avoid sharing sensitive information, and report suspicious activities to banks and authorities.
Bank credit growth has slowed to 11.1% as of Nov 15, 2024, compared to 20.6% the previous year. Deposit growth also decreased, with banking system deposits rising by only 6.7% since March. Banks are liquidating govt bonds due to slower deposit growth. Retail lending and NBFC loans have similarly declined.
Economists are speculating over the future of Das in the wake of data showing the South Asian economy expanded 5.4% from July to September, a seven-quarter low and far below the Reserve Bank of India’s 7% projection.
India’s economic growth slowed in the September quarter, leading to concerns about stock market weakness. Market participants expect a recovery if the Reserve Bank of India cuts interest rates or reduces cash reserve ratios. Analysts have mixed views on the extent of further market corrections but anticipate limited near-term upside due to earnings and valuation issues.
