Subhadip's Feed
Nov 7, 2013

India may find few takers for new foreign bank rules

MUMBAI, Nov 7 (Reuters) – India’s move to encourage foreign
banks such as Citigroup and HSBC Holdings to
reposition as wholly-owned subsidiaries may find just a handful
of takers, given the regulatory trade-off.

Under central bank rules announced late on Wednesday,
foreign banks which convert their local operations from a branch
structure to being subsidiaries will be treated on nearly equal
terms with local lenders.

Nov 7, 2013

S&P says next government’s agenda to determine rating

MUMBAI (Reuters) – Standard & Poor’s said on Thursday it will review India’s rating once a new government due to be elected next year lays out its policy agenda, reducing the prospect of a destabilising downgrade to below investment grade ahead of the polls.

That could delay the next review until after May 2014, by when India is due to hold a general election, although S&P added it could move earlier should the country’s fiscal or external standing deteriorate.

Nov 7, 2013

Rupee falls on S&P comments, oil window taper

MUMBAI (Reuters) – The rupee fell to a more than five-week low on Thursday after Standard & Poor’s said the country may face a rating downgrade next year if the new government fails to revive economic growth and on reports that oil refiners have resumed buying some of their dollar requirements from the market.

S&P said it may cut India’s sovereign rating to below investment grade should the next government fail to provide a credible plan to reverse the country’s low economic growth.

Nov 7, 2013

S&P says next Indian government’s agenda to determine rating

MUMBAI (Reuters) – Standard & Poor’s said on Thursday it will review India’s rating once a new government due to be elected next year lays out its policy agenda, reducing the prospect of a destabilizing downgrade to below investment grade ahead of the polls.

That could delay the next review until after May 2014, by when India is due to hold a general election, although S&P added it could move earlier should the country’s fiscal or external standing deteriorate.

Nov 6, 2013

RBI allows expanded foreign bank presence in new rules

MUMBAI (Reuters) – The Reserve Bank of India (RBI) said it will treat foreign banks operating in the country on nearly equal terms with local lenders if they move to a wholly owned subsidiary structure, as it seeks to bolster its regulatory powers in the wake of the global financial crisis.

The rules issued by the RBI late on Wednesday were generally in line with expectations and could expand opportunities for international banks in the country, since they would have greater freedom to open branches and would be able to participate more fully in the development of the Indian financial sector.

Nov 6, 2013

India issues rules allowing expanded foreign bank presence

MUMBAI, Nov 6 (Reuters) – India’s central bank said it will
treat foreign banks operating in the country on nearly equal
terms with local lenders if they move to a wholly owned
subsidiary structure, as it seeks to bolster its regulatory
powers in the wake of the global financial crisis.

The rules issued by the Reserve Bank of India (RBI) late on
Wednesday were generally in line with expectations and could
expand opportunities for international banks in the country,
since they would have greater freedom to open branches and would
be able to participate more fully in the development of the
Indian financial sector.

Nov 6, 2013

Rupee falls most in over two months

MUMBAI (Reuters) – The rupee fell the most in over two months on Wednesday on sustained dollar demand from state-run banks, leading to speculation that they were buying on behalf of oil refiners.

The Reserve Bank of India (RBI) has been directly providing dollars to state-run oil firms via a dollar swap facility since late August, taking an estimated $300-$400 million off daily market trading.

Nov 5, 2013

Rupee gains on inflows; economy still a dampener

MUMBAI (Reuters) – The rupee recovered from lows to snap two sessions of losses on Tuesday on bunched up dollar sales related to foreign fund inflows, even as another economic indicator pointed to continued uncertainty over a revival.

Strong global liquidity has pushed Indian stocks to lifetime highs even as economic indicators continue to remain grim. The rupee has been a major beneficiary of the stock market inflows.

Oct 25, 2013

Rupee closes flat; RBI rate decision key

MUMBAI (Reuters) – The rupee ended flat on Friday, but extended losses for a second week, as caution set in ahead of an expected interest rate hike by the central bank at its policy review next week.

The Reserve Bank of India is widely expected to raise its key repo rate by 25 basis points on Tuesday – its second consecutive monthly hike – as it tries to tackle rising inflationary pressures, a Reuters poll showed.

Oct 25, 2013

Indian rupee closes flat; RBI rate decision key

MUMBAI, Oct 25 (Reuters) – The Indian rupee ended flat on
Friday, but extended losses for a second week, as caution set in
ahead of an expected interest rate hike by the central bank at
its policy review next week.

The Reserve Bank of India is widely expected to raise its
key repo rate by 25 basis points on Tuesday – its second
consecutive monthly hike – as it tries to tackle rising
inflationary pressures, a Reuters poll showed.