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707 ArticlesEconomy

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August 2014 IIP at a Disappointing +0.4%, Manufacturing Contracts

The Index of Industrial Production (IIP) for August 2014 came in at a surprisingly low 0.4% after showing promise in the three months. IIP The disappointment ...

RBI Mopping Up Excess Liquidity by Selling Govt Bonds

RBI’s selling bonds, and selling them big time. With India moving to what seems to be a liquidity glut in the banking system, with the RBI now having to ...

Finally, the Food Corporation is Dumping Excess Stock; Unrequired Buffer Lowest in 2 years

Food prices have been under control and it’s possible a part of that is attributable to the FCI selling off stocks from its buffers. While we still ...

RBI Wants To Cut Sector-Based Incentives When Banks Give Loans

My last point on the Rajan’s recent presentation is about how they view financial inclusion in the concept of spreading Credit. Does this probably ...

Should Banks Think of ATMs as A Profitable Business Separately?

From more slides that released today, as part of Raghuram Rajan’s speech at the FICCI-IBA Annual Conference: While its true that banks aren’t ...

IIP Growth Falls to 0.5%, Manufacturing Contracts to -1%

India’s Index of Industrial Production (IIP) fell to a four-month low of 0.53%, after three strong months. (Interestingly, June IIP was revised up from ...

RBI Buys $10 Billion in July, And Reveals How It’s Managing Forwards

RBI has revealed in it’s monthly bulletin that it has bought over $5bn in the forex market in July 2014, and another $5bn in forwards. This adds up to the ...

Watch Out Before You Guarantee a Loan; RBI Says Banks Can Tap You Faster

If you are asked to be a guarantor to a loan, here’s something to think about: RBI has said you will be a wilful defaulter if you refuse to honour the ...

Government Cuts Borrowing by 21,000 cr., Will Prop Up Bonds

The government will borrow less, it seems, with their “cash situation” under control. The total reduction will be Rs. 21,000 cr. Long term bonds will see a ...

IIP for Jun 2014 Falls to 3.4%, Manufacturing Growth Slows

The Index of Industrial Production (IIP) for Jun 2014 comes in at 3.4%, a tad lower than the 5% growth we saw in May. This is still sub-standard, and has been ...