Page 3 - Interest Rate Hike

HDFC Ltd hikes home loan rates by 25 basis points effective March 1

However, lender has a limited period festive season offer, under which borrowers with credit scores of 760 and above can get home loans at 8.7% till March 31

Central banks, including RBI, may raise interest rates to combat inflation

ECB President Christine Lagarde has already said the bank till hike rates, if needed

Markets may give single-digit positive returns for the year: J Jaipuria

"The market is not factoring in any major interest rate hike. The consensus is that we are close to a prolonged pause in the rate-hike cycle"

The real story behind real interest rate

While the debate will continue about the benchmark rate to calculate real interest rate, both for the lenders and the savers, shouldn't all rates be higher than the rate of inflation?

Further tightening could push growth down to 5%: MPC member Ashima Goyal

Continuing to raise nominal repo rates until core inflation falls could imply an overshooting or excess tightening of real rates, says the MPC member in an interview with Business Standard

Need to pause rate hikes as growth risks are significant: Jayant Varma

India's monetary policy panel failed in its mandate to keep inflation within the 2%-6% band, with it breaching the upper tolerance limit for three consecutive quarters to September 2022

Real interest rate of about 1% appropriate for Indian economy: Ashima Goyal

"You don't need to keep on raising nominal rates as long as inflation does not come down because then you will definitely overshoot in terms of real rates," Goyal said

Sensex crashes over 900 points: Top 4 factors behind a wobbly Wednesday

Analysts believe that this down trend is a short-term gyration and investors' should use this dip to accumulate high quality growth stocks

New Zealand hikes key rate to 4.75% to fight inflation despite cyclone

New Zealand's central bank raised its benchmark interest rate by a half-point Wednesday to 4.75 per cent as it continues trying to wrestle down inflation. The increase, which can raise the borrowing costs for consumers on everything from credit cards to mortgages, comes despite the economic pain that a devastating cyclone is already inflicting on many people. The bank said that over time, the cyclone rebuild will only add to inflationary pressures. Cyclone Gabrielle hit New Zealand last week, killing 11 people and causing billions of dollars in damage to homes and infrastructure. Reserve Bank Governor Adrian Orr said the committee that makes interest rate decisions agreed the rate needed to increase to ensure that inflation returned to the bank's target of around 2 per cent from its current level of 7.2 per cent. Orr said that while there were some early signs price pressures are easing, core inflation remained too high and employment was at its maximum sustainable level, with the

Sticky inflation to nudge RBI to hike interest rates once more: Poll

The survey also showed inflation was likely to remain sticky at 6.00% this quarter, higher than the RBI's forecast of 5.70%

FM Nirmala Sitharaman defends RBI: 'Reining in inflation, capital outflows'

India's retail inflation reversed its downward trend in January at 6.52 per cent and once again breached the central bank's upper tolerance limit

Are the markets ignoring the possibility of higher inflation?

Globally, too, sticky inflation seems to be a cause for concern. Last week, two Federal Reserve (US Fed) officials suggested that the US central bank may need to keep interest rates elevated ahead

RBI issues final guidelines on interest rate risk in banking book

The Reserve Bank on Friday issued final guidelines on Interest Rate Risk in Banking Book which require banks to measure, monitor, and disclose their exposure to IRRBB that may impact the capital base and future of earnings of lenders. IRRBB refers to the current or prospective risk to banks' capital and earnings arising from adverse movements in interest rates that affect its banking book positions. Excessive IRRBB can pose a significant risk to banks' current capital base and/or future earnings. "These guidelines, accordingly, require banks to measure, monitor, and disclose their exposure to IRRBB," the RBI said in a circular. The final guidelines on IRRBB are in alignment with the revised framework issued by the Basel Committee on Banking Supervision (BCBS). The RBI further said the date for implementation of the guidelines will be communicated in due course. "Banks are advised to be in preparedness for measuring, monitoring, and disclosing their exposure to interest rate risk i

We continue to be selective on corporate loans: Indian Bank MD & CEO

Our margins in the first quarter was 3.1 per cent, while it was 3.2 per cent in Q2 and 3.7 per cent in Q3, says Shanti Lal Jain

How have the home loan EMIs changed since RBI's repo rate hike in May 2022?

The deposit and lending rates are directly proportional to the repo rate, and they generally go up if the benchmark rate is hiked

Indian Overseas Bank Dec quarter profit rises 22% to Rs 555 crore

State-owned Indian Overseas Bank (IOB) on Thursday reported a 22 per cent growth in its profit at Rs 555 crore in the quarter ended December 2022 due to an increase in interest income and improved asset quality. The Chennai-based bank had posted a net profit of Rs 454 crore in the same quarter a year ago. The bank's total income increased to Rs 6,006 crore in the latest December quarter from Rs 5,317 crore in the year-ago period, IOB said in a regulatory filing. Interest income of the bank increased to Rs 5,056 crore as against Rs 4,198 crore in the third quarter of the previous fiscal. On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 8.19 per cent, as compared to 10.4 per cent at the end of third quarter of previous fiscal. At the same time, net NPAs too eased to 2.43 per cent, as against 2.63 per cent in the same period a year ago. As a result, provisions for bad loans declined to Rs 711 crore as against Rs 937 cr

RBI to hike rates again on sticky inflation, Fed pressure, say analysts

The central bank surprised markets by leaving the door open to more tightening, saying the stickiness of core inflation was concerning

25 bps hike: No change in stance, par for the course

One cannot completely rule out the possibility that the pause button would be pressed at the next MPC meet. Future actions, both for policy rate and stance, will depend on evolving data

Moderation of pace of rate hikes gives RBI room to assess impact: Das

Central bank management speaks to the media about inflation, economy and government borrowing

MPC's optimistic growth outlook augurs well for credit demand

The MPC's optimistic growth outlook for H2 FY2024 augurs well for the credit demand for the banking sector as well as the lenders, said Karthik Srinivasan of Icra