The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Summary of Indian Banking sector results

Regulatory changes in October 2008:

 – CRR cut by 250 basis points

 – SLR cut by 100 basis points

 – Repo rate cut to 7.5%

 – 1/2% of Net DTL can be picked up as borrowings from the RBI for a period of 30 days instead of 7 days 

 – Security of Corporate collateral also added for a temporary period in the Inter Bank market

 

 

Key Results in 2009 Q2:

– CAR high at 13% 

– Net growth in deposits at 22%

– Net growth in Loans at 20-25% 

 

Banks have also affected decrease in PLR and call money rates are back to 7%

But the decrease in Advances and Deposits in 2008 Q4 and this Q1 would not have been compensated

 

Mutual Funds have faced record withdrawals in October and are still pumping money in the markets, but at the cost of appeasing Corporate investors with guaranteed returns (which are adding back to expenses of the scheme). 

As reported on UTVi in a public sector executive face-to-face on 3rd Nov 

Information

This entry was posted on November 3, 2008 by in India, Uncategorized and tagged , , , , .

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