The Reserve Bank Of India has announced rate cut. It has reduced the repo rate by 50 basis points to 5% and cut the reverse repo rate by basis points to 3.5% with immediate effect.
Repo Rate is the rate at which RBI lend to banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
In last 5 months, RBI has cut repo rate by 4% and reverse repo rate by 2.5%. Home loans, corporate Loans and Auto loans and personal loans will be cheaper.
Experts feel that the industries are passing through bad periods and will get loans from Banks at lower rates.
The Q3 GDP had come lower than market expectations at 5.3% which built pressure for RBI to go for cut in rates. Sharp fall in inflation figures also made space for more rate cuts.
However in a meeting with RBI Governor, the banks informed him that liquidity was at comfortable level any rate cut by RBI would not translate into a lending rate cuts by the banks.
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ICICI Bank in News again.
Russia is also facing recession and in this conditions many companies are in trouble. ICICI had invested in properties in Russia and bank will not be benefited in near future, says report from CLS. As many companies are not in a position to repay the loans, ICICI may be forced to write off the laon. Bank has not yet declared and mark-to-market loss. The loans amount to US $ 58.40 crore.
Point to note : It is obvious that the Bank is going to losse a good amount in Russia, LIC, leading Institutional investor, is increasing its holdings in the Bank. LIC has increased its stake from 7.34% to 9.38% between Nov 21, 2008 and Feb 17, 2009. ICICI has declared on Feb 24, 2009.
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Repo Rate is the rate at which RBI lend to banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
In last 5 months, RBI has cut repo rate by 4% and reverse repo rate by 2.5%. Home loans, corporate Loans and Auto loans and personal loans will be cheaper.
Experts feel that the industries are passing through bad periods and will get loans from Banks at lower rates.
The Q3 GDP had come lower than market expectations at 5.3% which built pressure for RBI to go for cut in rates. Sharp fall in inflation figures also made space for more rate cuts.
However in a meeting with RBI Governor, the banks informed him that liquidity was at comfortable level any rate cut by RBI would not translate into a lending rate cuts by the banks.
===============
ICICI Bank in News again.
Russia is also facing recession and in this conditions many companies are in trouble. ICICI had invested in properties in Russia and bank will not be benefited in near future, says report from CLS. As many companies are not in a position to repay the loans, ICICI may be forced to write off the laon. Bank has not yet declared and mark-to-market loss. The loans amount to US $ 58.40 crore.
Point to note : It is obvious that the Bank is going to losse a good amount in Russia, LIC, leading Institutional investor, is increasing its holdings in the Bank. LIC has increased its stake from 7.34% to 9.38% between Nov 21, 2008 and Feb 17, 2009. ICICI has declared on Feb 24, 2009.
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