Sunday, December 7, 2008
RBI cuts Repo and Reverse Repo
RBI on saturday cut its repo and reverse repo rate by 100 bps to 5% and 6.5%, signaling banks to cut their lending rates.
Following are some of the key take aways from the RBI's announcement on Saturday
Ø RBI cuts reverse repo and repo rates by 100 bps
Ø SIDBI and NHB are being given liquidity support to the extent of Rs.7000 crore and Rs.4000 crore to provide liquidity support both SME segment as well as Housing Finance companies
Ø FCCBs are now being allowed to be bought back by Indian corporates, basically issuers out of their own dollar resources raised through ECB or FCCB
Ø Loans granted to HFCs to fund less than Rs 20 lakhs of housing dwelling units, would be classified under the priority sector lending
ØDecided to extend exceptional/ concessional treatment to the commercial real estate exposures which are restructured up to June 30, 2009
Ø Second restructuring done by banks of exposures (other than exposures to commercial real estate, capital market exposures and personal/ consumer loans) up to June 30, 2009, will also be eligible for exceptional regulatory treatment.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment