RBI may well cut repo rate by 25 basis points. In March, one would have expected the central bank to keep the rate unchanged in the annual monetary policy review on May 3. The RBI had cut Repo rate by 25 basis points in March. An improvement in trade deficit, drop in core inflation, achievement [...]
Archive for the ‘Economy’ Category
Role of Commercial Banks towards Financial Inclusion
February 10th, 2013 
Vineet Patawari The whole process of financial inclusion will not be possible without the contribution of banks. Banks are the key pillars of India’s financial system. Public have immense faith in banks. Share of bank deposits in the total financial assets of households has been steadily rising (presently at about 40%). Banks enjoy considerable goodwill and access [...]
What equities promise for retail investors in 2013
January 14th, 2013 India Infoline We promise according to our hopes, and perform according to our fears. – Francois Rochefoucauld The Year 2013 has got off to a promising start. While the fag end of the year saw equity markets undecided over the fiscal cliff issue, some last-minute negotiations resulted in the US managing to avoid across-the-board tax increases and [...]
RBI: Rates, Banks and Inflation
September 19th, 2011 Praveen Bajaj There could not have been a more opportune time for me to write this article. With every passing day since the last year, Dr Subbarao’s job is getting increasingly tougher. With inflation still keeping up against RBI and absence of significant structural actions on Government’s part to control inflation, options for policy actions with RBI [...]
Posted in Economy 
Tags: rbi, RBI Banks, RBI Inflation, RBI Rates, reserve bank of india 
2 Comments »US Debt ceiling – What is it all about?
August 4th, 2011 Praveen Bajaj One of the most talked about news doing rounds in the world economy in the last month has been the US debt ceiling. US is the biggest economy of the world with $ 14.6 trillion of GDP. Nearest competitor China is at $ 5.8 trillion i.e less than half of that of USA. Still credit [...]
Posted in Classroom, Economy Tags: U.S. Debt Ceiling, us debt ceiling 2011, us debt ceiling impact, us debt deal, US economy No Comments »Scams, corruption and WE….
June 30th, 2011 Praveen Bajaj There is an old adage from a Nana Patekar movie – Sau me assi be-imaan….fir bhi mera BHARAT mahaan Historically, there always has been much ado about corruption in the country and that sort of became a part of the life. But thanks to Anna Hazare, Baba Ramdev and the recent media hype created on [...]
Base rate Vs BPLR
June 5th, 2011 Praveen Bajaj Shift from BPLR to Base Rate Recently with release of RBI circular on Base rate implementation, there has been a lot of debate going on regarding BPLR (benchmark prime lending rate). Here is our beginner’s guide to understand the two rates. What is BPLR? BPLR is the reference rate for banks for pricing their loan [...]
Case for a 50 basis points on May 3??
May 1st, 2011 Praveen Bajaj “Sakhi saiyan to khub hi kamat hai…..mehngai daayan maare jaat hai….” goes a number from a popular bollywood flick and rightly so atleast for RBI. Since the last 15 months or so…RBI has been trying to battle the rising inflation by raising rates (What are policy rates?) eight times since March last year. However inflation, now [...]
Federal Reserve and Regulators Work Together For Financial Reform
April 21st, 2011 Praveen Bajaj The economic debacle of 2008 brought the modern economic system to the brink of total collapse. In fact, there was a brief period of weeks in September and October of 2008 when the most powerful people in the world were unsure what was going to happen. The incredible shock and general mayhen that swept through [...]
The Relevance of Economic Indicators to Financial Markets
April 13th, 2011 Praveen Bajaj Economic indicators can be broken down into 3 basic categories: Primary, Secondary, and Tertiary. Primary indicators are the ones that everyone should be paying attention to, secondary indicators are less important in determining the direction of the market but can often times serve to help evaluate primary indicators, and tertiary indicators are the ones that [...]