INSUBCONTINENT EXCLUSIVE:
on rate cuts in the wake of economic slowdown, Reserve Bank of India Governor Shaktikanta Das said on Monday that growth is the top priority
flagship conference, FIBAC 2019, the RBI governor also said the real test for public sector banks is their ability to tap the capital market
to raise funds."Growth is the top priority today, but it is important to look at financial stability along with growth
Business community is dealing with real challenges in the economy
The MPC (monetary policy committee) finds growth to be the highest priority at this juncture," Mr Das said.The BSE Sensex at 37631.50 points
at noon on Monday was up 0.75 per cent.In its fourth consecutive bi-monthly monetary policy rate cut made earlier this month, the RBI
lowered the repo rate by 35 basis points to 5.4 per cent.Mr Das said he expected banks to move quicker on linking the lending rates with the
RBI's repo rate towards better transmission to support consumption and demand."The real test For PSBs is the ability to access the capital
Increasing currency and debt crises globally adds headwinds to financial stability
Weaker than expected global growth is one of the risks to financial stability
There are global headwinds from geopolitical and trade tensions," he said.Underlining the need for a robust non-banking financial company
(NBFC) system, Mr Das said the RBI is exploring the regulatory changes needed for housing finance companies (HFCs) and has sent suggestions
on PSU bank reforms to the government."We want to ensure a robust and stable NBFC system
The size of NBFC sector forms 25 per cent of combined financial services in India
The RBI is also analysing the regulatory changes needed for housing finance companies," he said."RBI stress tests indicate that NPAs
(non-performing assets or bad loans) may decline by March 2020 and the central bank is keeping close watch on inter-connects between banks
and NBFCs," he added.He also said that although state-run banks' profitability has been lacklustre despite strong capitalisation, the
the domestic automobile sector is facing its worst crisis in 20 years.The Society of Indian Automobile Manufacturers (SIAM) reports that 300
dealerships have shut down in recent times
Sales of cars, tractors and two-wheelers have declined considerably
SIAM said that about 10 lakh jobs have been hit in the auto component manufacturing industry.Health of the real estate sector, which is a
massive indicator of the state of the economy and has links with about 250 ancillary industries such as bricks, cement, steel, furniture,
electrical and paints, is causing a major concern
reported a decline in volume growth in the April-June quarter
While the labour force survey, released by the government in July, showed a record high unemployment rate of 6.1 per cent for 2017-18, a
recent RBI report does not present a brighter picture.The RBI consumer confidence survey showed a drop in consumer confidence in July on
account of a pessimist outlook on job creation and on the overall economic scenario.Amidst all the gloom, foreign portfolio investors (FPIs)
continue to pull out from the equity market on account of a tax surcharge levied in the latest Budget.Get Breaking news, live coverage, and
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