The rupee appreciated in early trade after the new governor of the Reserve Bank of India (RBI) Raghuram Rajan lifted market sentiment yesterday by announcing a slew of measures.
To provide exporters/importers greater flexibility in risk management, RBI enhanced the limit available to exporters to 50%. The limit for importers was raised to 25%.
RBI also offered a window to banks to swap fresh foreign currency non-resident (bank) deposit or FCNR(B) dollar funds. These are mobilised for at least three years, at a fixed rate of 3.5% a year.
"We have decided the current overseas borrowing limit of 50% of the unimpaired tier-I capital would be raised to 100% and the borrowings mobilised under this provision can be swapped with RBI at the option of the bank at a concessional rate of 100 basis points below the ongoing swap rate prevailing in the market," Rajan said yesterday in his speech.
After taking charge as the new RBI governor, Rajan postponed the mid-quarter review of its monetary policy by a couple of days to September 20. The US Federal Open Market Committee meeting, scheduled on September 17-18, is expected to indicate when the US Fed might start tapering its stimulus programme.
Meanwhile IMF has said scope of easing monetary stance in India is very limited and it might have to be tightened due to high inflation.
Rating agency Moody's Investors Service today downgraded the subordinated debt (subdebt) and junior subordinated debt ratings of 11 Indian banks.The 11 banks affected are 8 public sector banks and three private sector banks.
Public Sector Banks
- Bank of Baroda (deposits Baa3 stable, BFSR D/BCA ba2 negative)
- Bank of India (deposits Baa3 stable, BFSR D/BCA ba2 negative)
- Canara Bank (deposits Baa3 stable, BFSR D/BCA ba2 negative)
- IDBI Bank Ltd (deposits Baa3 stable, BFSR D-/BCA ba3 stable)
- Indian Overseas Bank (deposits Baa3 negative, BFSR D-/BCA ba3 negative)
- State Bank of India (deposits Baa2 stable, BFSR D+/BCA ba1 stable)
- Syndicate Bank (deposits Baa3 stable, BFSR D/BCA ba2 negative)
- Union Bank of India (deposits Baa3 stable, BFSR D/BCA ba2 negative)
Private Sector Banks
- Axis Bank Limited (deposits Baa2 stable, BFSR D+/BCA baa3 stable)
- HDFC Bank Limited (deposits Baa2 stable, BFSR D+/BCA baa3 stable)
- ICICI Bank Limited (deposits Baa2 stable, BFSR D+/BCA baa3 stable)
>>> NIFTY <<<
>>> Click the chart to see on full screen <<<
Nifty crossed all our resistance given earlier and now looks like an IHS. If able to trade above 5616 then important changes may happen, else sell may continue. Lets wait and see.
>>> YES BANK - As Updated on 30th Aug, 2013<<<
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>>> As Updated on 02nd Sep, 2013 <<<
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>>> Happened and Yet to <<<
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All Target done on Yes Bank - Looks like it can move further. Lets See.
>>> KTK BANK - As Updated on 03rd Sep, 2013 <<<
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>>> Happened and Yet to <<<
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Yes look for a Target of 89 and 102 Soon on KTK Bank.
>>> L&T <<<
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LT should rally if breaks above the channel as shown on chart. All my clients holding LT and Booked some Part Profit too.
>>> ANDHRA BANK <<<
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Andhra Bank - We are HOlding with Part Profit Booked. Good Break Out and seems like worst is over. Ready for a Good or Big Rally.
