Topic: RBI

Policies like deficit monetisation, loan restructuring, higher tariffs and import licencing have been brought back to combat the economic fallout of Covid-19.

Experian Plc told RBI in July that HDFC Bank has been late in providing details of its loans, including repayment status of millions of retail borrowers.

RBI expects headline inflation to remain elevated in the second quarter of 2020-21. It also sees real GDP shrinking in the first half as well as the full year.

Of the 42 economists surveyed by Bloomberg, 21 expect a 25 basis-point rate cut Thursday, one projects a 50-point move and the rest see no change.

Deepak Parekh says at ThePrint’s ‘Off The Cuff’ that by giving a loan moratorium, the RBI is creating a problem for later on.

Deepak Parekh, Chairman of HDFC Ltd, India's largest housing finance company, was the guest at ThePrint's Off the Cuff. In a conversation with Editor-in-Chief Shekhar Gupta, Parekh talks about the stressed financial system and how the sector could see consolidation in the coming months. He was also optimistic about demand recovery in the coming months and advocated aggressive asset monetization and disinvestment to create fiscal space. Parekh also cautioned against blindly printing money. Parekh said builders should look to provide discounts and clear their housing inventory in the coming months.

At ThePrint's Off the Cuff, HDFC chairman Deepak Parekh said govt should reduce stakes in state-owned banks to 51% and pursue aggressive asset monetisation & privatisation.

The Indian Banks’ Association has written to RBI, saying debt recast needs to be completed by September to prevent fresh bad loan creation.

CPI-based inflation has remained over 6% for last 2 quarters. With NPAs also expected to rise significantly, RBI could focus on financial stability this time.

The Indian govt & the RBI launched many schemes to ensure availability of credit during Covid, but financial institutions are still cautious about new lending.