Tag: rbi governor

Reserve Bank Governor Shaktikanta Das yesterday(10th Nov.2021) expressed confidence in the economy clipping at the projected 9.5 percent this fiscal as per the growth impulses and the strong fast-moving indicators. Giving all the credit for the faster-than-expected recovery of the economy to the government, Das said the central bank has only been supporting the government in reviving the economy ravaged by the pandemic. Citing a slew of measures the government has taken since the pandemic struck in March 2020, the governor specifically mentioned tax cuts on fuels, tax resolution for the telecom sector, annulling of the retro tax legislation, sale of Air India, plans to sell some of the public sector banks and PLI scheme as the major reforms and growth-drivers bearing fruits now. Read more

According to expert economists, the extension given to Mr. Shaktikanta Das, the governor of the Reserve Bank of India (RBI) is good news for the market, as the economy is in the preparation mode for a takeoff. The government has quite rightly made the announcement before the term came to an end so that there is certainty on all sides. From a market perspective, this means that the mindset of the Governor is known and there will be no surprises. While it is true that institutions are more important than the person, the ideology and approach of Governors of central banks are important. Mr. Das has followed a very cogent approach of patiently hearing out the market before taking any decision, which has been a strength. There have hence been some major achievements under his first term, which has helped the economy and market. Read more

RBI governor Shaktikanta Das in an interview with TOI said that savers can look at various small savings schemes for better returns while asserting that inflation management remains a top priority. He said equity investors must be judicious and not get carried away by short-term trends. Growth impulses are gradually and steadily getting broad-based. The high-frequency indicators such as steel consumption, PMI for manufacturing and services are expanding, GST collections and e-way bills are showing improvement. Earlier, there was an impression that it was due to pent-up and festival demand. But now, it is genuine demand that is visible. The vaccination drive is giving greater confidence to consumers, so the demand is expected to sustain. The only downside risk is the recent spike in the number of Covid cases in certain parts of the country. With daily vaccination numbers going up, we should be able to contain a further spike. Read more

D Subbarao, the former RBI Governor, feels that setting up a bad bank is not just necessary but unavoidable in the present circumstances when NPAs are likely to balloon and much of the resolution will have to take place outside the IBC framework. The standard advantage of a bad bank is that the entity taking a decision on the sale price is different from the entity accepting that price. Conflict of interest and corruption is avoided, and importantly, is seen to be avoided. The former RBI Governor noted that with the economy contracting by at least five percent this fiscal year, non-performing assets (NPAs) will balloon. Also, according to RBI's Financial Stability Report, gross NPAs of banks may rise to 12.5 percent by March 2021 under the baseline scenario, from 8.5 percent in March 2020. Read more

RBI governor Shaktikanta Das today said that GDP growth would likely remain in the negative territory in 2020-21 lending credence to the dire forecasts rating agencies and brokerages. Das said he was optimistic about a possible pick-up in growth impulses in the second half, but added that everything was going to depend on how the pandemic situation plays out. In the second half, Das said, the economy could get a boost from ideal conditions created by fiscal, monetary, and administrative actions taken so far — possibly leading to a change in the situation. Read more