October Indian Inflation at a High of 8.6%
Indian inflation continued to remain extremely high with October inflation printing at 8.6% oya (0.6% m/m, sa). Underpinning this month’s inflation was a sharp acceleration in non-food primary articles (e.g. fibres, silks, rubber) reflecting the sustained rise in global commodity prices in recent weeks.
More worryingly, while the level of manufacturing ex-food inflation continues to remain sticky at the 5% level, its monthly momentum Read more
List of Private Sector Banks in India
We have obtained the list of all Private Sector Banks in India.
There are 25 private sector banks in India which are categorized by the RBI as Old Private Sector Banks and New Private Sector Banks. The 18 Old Private Sector Banks are as follows,
- Bank of Rajasthan [ Merger with ICICI going on]
- Bharat Overseas Bank
- Catholic Syrian Bank
- City Union Bank
- Dhanlaxmi Bank
- Federal Bank
List of All Nationalized Banks in India
Nationalized Banks also known as Public Sector Banks Or PSU Banks are the Banks where Government of India has direct control in ownership and management. Advantage of banking with these financial institutions is that they don’t have hidden charges like most Private Sector and Foreign Banks do.
India has 26 Nationalized Banks and Here is the list of these Banks where you can conduct your business, Read more
Bliss GVS Pharma pact with Kuwait Saudi Pharmaceutical Industries
Bliss GVS Pharma has signed a Joint Venture (JV) agreement with Kuwait Saudi Pharmaceutical Industries Company, based in Kuwait, for establishing a Suppository Line Manufacturing facility in Kuwait.
The company manufactures wide range of Pessary Formulations, Suppository Formulations, Calcium Preparation, Protein Powders, Iron Preparation, Antibiotics, Analgesic and Antipyretics, Respiratory, Anti-inflammatory, Dermatological Preparations and Anti-Diarrhoeal products.
RBI raises repo and reverse repo rates by 25 and 50 bps
Finally, the RBI Governor mustered some courage to hike the much needed Repo and Reverse Repo rates by 25bps and 50 bps during its monetary policy review meeting today. With this, the repo rate will stand at 5.75% and reverse repo rate will go up to 4.5%. Meanwhile, CRR has been kept unchanged at the current level of 6.0%. Story Updating..
RBI embarked on gradual exit from an overtly accommodative monetary stance, while ensuring that the nascent recovery is not
derailed. Thereafter, as recovery gathered momentum and so did inflation, RBI’s stance was one of balancing the objectives of Read more
RBI Monetary Policy Expectations
With Inflation showing no signs of abatement and corporate profits on the upswing, it is high time that RBI act as an independent regulator in the interest of Indian consumer and not South Block.
In the forthcoming announcement of monetary and credit policy on July 27, markets expect 25bps hike in both repo and reverse repo rates and no change in CRR. This expectation is based on the view that as the economy inches towards normalcy, policy rates also need to firm up to their long-term ‘steady-state’ level. Any more aggressive tightening is unwarranted at this juncture in analysts Read more
India Reforms 2.0 – GST Closer to Rollout
The FM has proposed to start with a differential tax structure for goods and services in the first year and gradually converge to a uniform rate structure applicable for all goods and services in the third year. He has proposed Central GST (CGST) and requested states to consider State GST (SGST) rates equivalent to the former. Likely effective rates are summarised in the table below:
Rate Structure – There will be two tier rate structure for goods and separate rate for services in initial years. It is Read more
New Indian Rupee Symbol
The new Indian Rupee Symbol is as show below. The creator of this Symbol gets Rs 250,000 but the symbol itself is now the property og the Government of India.
Significance of the new Indian Rupee symbol – It looks like an “R” as well as “Ra” in Devanagiri script which powers the official Indian Language – Hindi.
All Software Makers across the World have been asked to accommodate the New Symbol. The RBI and Government of India has released this Symbol for use by FreePress and others.
Current fall in IIP a shocker
IIP growth, at 11.5% Y-o-Y, has been lower than the most conservative Street estimate; we had estimated 13-14%. The median street estimate was ~16.2%.
The big cyclical uptick is largely over for IIP, and in the coming months the number will fall further from the current level. IIP growth rate for June should be in high single-digits. The current number supports our view of absence of any generalised demand overheating in Read more
10% inflation + 16.5% IP = 25bp RBI hike
Here is BOFA Merrill’s account of the current situation in India. IN a report it said,
expect the RBI to hike policy LAF rates by 25bp in its July 27 policy. We believe May industrial growth, after all, will likely post a high 16.5% on July 12. We also expect June inflation to persist at 10% levels on July 14. Besides these figures, it is critical that the sowing month of July gets the normal rains that the Met forecasts. The markets will also keep an eye on the June Read more