Tag Archives: interest rate

RBI raises Interest rate by 50 basis points

India’s central bank Tuesday took measure that the goveenment failed to make ,it  hiked its key rates by 50 basis points each in the 11th such exercise since January 2010 to tame inflation, setting the stage for commercial banks to raise their interest on personal and corporate loans.

The repurchase rate, or the interest levied on short-term borrowing by commercial banks, has been revised to 8 percent from 7.5 percent, while the reverse repurchase rate — the interest on short-term lending — was hiked to 7 percent from 6.5 percent.

Banks Paying High Fixed Deposit Rates as of December 2010

Banks Paying High Fixed Deposit Rates as of December 2010

Bank Name Period of Investment Normal Senior Citizen
Allahabad Bank 2 years-3 years 7 7.5
Andhra Bank 3 years 8.6 9.1
Bank Of Baroda (BOB) 445 days-3 years 8.25 8.75
Bank Of India (BOI) 2 years-3 years 8.25 8.75
Bank Of Maharashtra (BOM) 366 days-3 years 8.3 8.8
Canara Bank 1000 days 8.6 9.1
Central Bank Of India 2 years-3 years 8.25 8.75
Corporation Bank (CorpBank) 2 years-3 years 8.1 8.35
Dena Bank 2 years-3 years 8.25 8.75
IDBI Bank 2 years-1099 days 8.25 8.75
Indian Bank (IB) 1 year-5 years 8.5 9
Indian Overseas Bank (IOB) 1000 days 8.5 9
Oriental Bank Of Commerce (OBC) 1000 days 8.75 9.25
Punjab and Sind Bank (PSB) 1000 days 9 9.5
Punjab National Bank (PNB) 1000 days 8.5 9
State Bank Of Bikaner and Jaipur (SBBJ) 1001 days-3 years 8.3 8.8
State Bank Of Hyderabad (SBH) 1000 days 8.75 9.25
State Bank Of India (SBI) 1000 days 8.5 9
State Bank Of Mysore (SBM) 909 days 8.55 9.05
State Bank Of Patiala (SBP) 999 days 8.75 9.25
State Bank Of Travancore (SBT) 1000 days 8.6 9.1
Syndicate Bank 2 years-3 years 8.25 8.75
UCO Bank 2 years-3 years 8.25 8.75
Union Bank Of India (UBI) 701 days-3 years 7.5 8
United Bank Of India (UBI) 2 years-3 years 8.25 9
Vijaya Bank 2 years-3 years 8.15 8.65

Reserve Bank of India raised Key Interest Rates

The Reserve Bank of India informed the market today that they have raised both Repo Rate and RRR, they have raised the key interest rates by more than expected and this is one of the main measure to control high inflation .

Repo Rate which is bank’s short term lending rate has been raised by 25 basis points to 5.75 percent and also it raised the reverse repo rate which is the Central bank that pays on bank deposits – by an unexpected 50 basis points, to 4.5 percent.Over here they expected only 25 basis points.They have left the cash reserve ratio unchanged at 6.0 percent, as expected.

RBI has increased CRR and Repo and Reverse Repo Rate by 25 basis points.

Reserve Bank of India has raised the
>Reverse repo rate under the LAF by 25 basis points from 3.5 Percent to 3.75 Percent with immediate effect and also increased the

>Repo rate under the Liquidity Adjustment Facility (LAF) by 25 point from 5.0 Percent to 5.25 Percent with immediate effect. 

>Cash reserve ratio (CRR) of scheduled banks by 25 basis points from 5.75 Percent  to 6.0 Percent  of their net demand and time liabilities (NDTL) effective the fortnight beginning 24 April 2010.

Food Inflation at 17.70 Percent

Food Inflation data came oput today which was at staggering 17.70 percent compared to 16.35 percent.Reserve Bank of India (RBI) reviews its policy on April 20 not sure if they will wait till that rate for raising interest rates , we will see , but this is a sure sign of interest rates raising , already bank stock felt the ehat and it was stammered in todays market.

RBI raised Repo and Reverse Repo Rate by .5 Per cent

RBI announced as part of efforts to control inflation worries that it has

>It has to raise the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 4.75 per cent to 5.0 per cent with immediate effect.
>And also to raise the reverse repo rate under the LAF by 25 basis points from 3.25 per cent to 3.5 per cent with immediate effect.

These measures will try to stop the raising inflation but not sure to what extent , As liquidity in the banking system will remain adequate, credit expansion for sustaining the recovery will not be affected.It will also monitor macroeconomic conditions, particularly the price situation, and it might tale further action if its required.

CRR hiked by 75 basis points – RBI Announced

Credit policy meeting outcome has come out and they have raised the CRR by 75 basis points , RBI has increased cash reserve ratio by 75 bps to 5.75 Percent , the hike would happen in two stages, the first stage of hike of 50 bps will be effective from February 13 and the next 25 bps from February 27. RBI has not touched the the reverse repo rate which is at 3.25 percent and repo rate which is at 4.75 percent.

DCB offering Home Loan below 8 percent

DCB – Development Credit Bank which is a publicly listed private bank said that they are going to offer home loan rate below 8 percent , which is one of kind and think one of the lowest in the market but wait you knw how below 8 percent its just .05 percent down , anyway they are offering for 7.95 percent for the first year for loan amount upto 5 crore and after 1 year it will be back to floating interest rate that will be prevailing at that time.

Reserve Bank keeps all the Key Interest Rates Unchanged

Reserve Bank of India informed today that Central Bank after the Policy review today have kept all the 3 Key interest rates unchanged .
Reserve Bank of India (RBI) which took several mesaure starting almost from october 2008 have lowered all the Key Inetrest rates.

>Repo rate, or its key short-term lending rate, was cut by 4.25 Percent to 4.75 Percent.
>Reverse-repo rate was cut by 2.75 Percent since early December 2008 >Cash reserve requirement (CRR) (the proportion of deposits that banks set aside), was cut by 4 percent to 5 Percent .

SBI reduces Home loan interest rate to 8 percent

SBI informed the market yesterday that it has reduced the home loan rate at 8 percent compared to what it is now , the catch is its only for the first 1 year from the date of approval after that it will change to normal rate whatever it is at that time .This scheme again is not all the time if you have the loan bought between February 2 and April 30, 2009 then you can avail this offer.

Reserve Bank of India Cuts CRR Rate , Repo Rate and Reserve Repo Rate

In order to cope up with the Global recession all the country are doing this almost every month and India which was not really into recession is trying to take all the measure to kepp away from it , But its kind of deeper that expected , Out of the various cuts that Reserve bannk of india has did this is the latest
Repor Rate cut
To reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reserve Repo Rate
To reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Cash Reserve Ratio – CRR Rate
To reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
The CRR cut is not immdiate but atleast its happening this si the only gfactor that will put some money in banks hand which in turn can be used by banks for various purpose , So this cut will release 20,000 crore.We can expect more rate cuts in lending loansfrom various banks.

Home loan interest might get cheaper – Banks agree to cut Prime Lending Rate

PSU Bank after meeting with finance minister P.Chidambaram have agree to cut the Prime lending rate by 75 basis points.Not sure it will be straight 75 basis points cut but it will be in the range .So india inc can breath little bit easy ,Credit guarantee on loans will be extended to Rs one lakh crore and deposit rates will be cut by 50 basis points.This is in reply to RBI measure which cut the CRR and lendign rate to bank by massive 3.5 percent and 1 percent .Which has almost release more than 200000 crore liquidity.RBI is ready to take more measures to maintain the liquidity.One bad news is Deposit interest rate might come down .

Reserve Bank Reduces Repo Rate by 1 percent from 9 to 8 percent

Reserve Bank on a sudden move reduced the Repo rate today by 100 basis points or 1 percent from 9 to 8 percsnt .This is like one of the measure that investors and banks was looking for because of the liquidity crunch .This cut has happen like on a suddent and one of the highest in 4 years i think.So This means that Banks can get money from RBI at a cheaper rate than before instead of paying 9 percent interest now they pay only 8 percent , Think this measure might bring down the lending rate for the consumers from bank , we will see.

RBI cuts another 100 basis points on CRR to induce 40,000 crore

So in 10 days RBI has almost cut 2.5 percent thats really mind blowing not sure why they say every time there is no problem and cut the CRR rate like this , This will induce more money into the Money market but not sure if this is going to raise the inflation , we will worry about that later , On Wednesday RBI announced that it will cut the Cash Reserve Ratio (CRR) further by 100 basis points to 6.5 per cent of NDTL with effect from the current reporting fortnight that began on October 11, 2008. This will birng in 40000 crore to the Money market in the hands of Bank .

CRR Repo Rate increased by half a percent to 8 percent

RBI started taking action to reduce the inflation , They decided that there is too much liquidity in the indian money system and have asked the banks to give half percent more cast out of thr system to reserve bank in a two step process which will In the first stage, CRR will be increased to 7.75% from April 26, and in the second by 0.25% (25 basis points) with effect from May 10. So Bank has to get more revenue to meet the gap by tightening of money supply, forcing banks to raise lending and deposit rates.