India Retail inflation: In the December policy meeting, the Reserve Bank of India (RBI) left the inflation aim unchanged at 5.4 per cent. In the August policy, the RBI MPC had raised its FY24 inflation forecast to 5.4 per cent from 5.1 per cent.
We will raise Rs 300 crore via bonds of two-, three- and five-year tenures. This will be our maiden bond issuance and is part of our effort to widen funding sources, says Vimal Bhandari, executive vice-chairman and chief executive officer (CEO), Arka Fincap.
The firm, a subsidiary of Kirloskar Oil, is only five years old and small (assets of around Rs 5,000 crore with an AA rating), but the response to this float will be closely watched: It would be the first by a non-banking finance company (NBFC) after Mint Road upped the risk weights on bank exposures to them by 25 percentage points.
The move by the Reserve Bank of India (RBI) has caught NBFCs off guard even though the issue had been flagged by Governor Shaktikanta Das with their corner-room occupants (and that of banks) in July and August 2023 - on consumer credit and the dependency on bank borrowings.
The RBI raised its economic growth forecast for FY24 to 7%, up from 6.5 percent; inflation estimate was left unchanged at 5.4 percent. The repo rate, or the rate at which the RBI lends to banks, remains at 6.5 percent and all the other rates remain where they are. An ET poll of 10 market respondents had forecast a status quo on policy rates.
RBI Monetary Policy Committee: The Reserve Bank of India s monetary policy panel today XXX India s inflation aim for this fiscal year amid worries for rising food prices and uncertainties around crude prices that have however recently been on a downtrend. Reserve Bank of India s Governor Shaktikanta Das today announced the inflation target during the Monetary Policy Committee s rate announcement. The MPC today also left India s repo rate unchanged for a fifth straight time.
Following rapid increases in the policy repo rate by a cumulative 250 basis points from May 2022 to February 2023 to cool inflation, the RBI has held rates steady since. One basis point is a hundredth of a percentage point.