Discover and read the best of Twitter Threads about #rbi

Most recents (24)

#RBI cut by 40bps each of these👇
#Repo rate to 4%
#ReverseRepo to 3.35%
#BankRate to 4.25%

Decision was reached after 5:1 vote,with #ChetanGhate,lone voice calling for 25 bps cut

#MPC meet was held ahead of schedule from 3rd-5th,June

#EMI #moratoroum extended by 3 more months
Moratorium extension till 31st August 2020,is both timely &reflective of @narendramodi govt's alacrity--Big relief to #MiddleClass

Measure to convert #moratorium interest payment into #TermLoan payable in FY21,is helpful

This will reduce #NPAs &stress on banks' balance sheets
#RBI's cut in #Repo will reduce cost of funds&extension of #moratorium will be supportive of financial stability;#Rates across #YieldCurve will move lower from current levels

Fall in #ReverseRepo rate will disincentivise banks from #hoarding #liquidity&coax them to lend

#Covid
Read 10 tweets
#rbigovernor PC
- MPC voted in 5:1 ratio
- Repo rate reduced by 40bps from 4.4% to 4%
- Reverse repo rate cut to 3.35% from 3.75%
- Global economy headed into recession, with mfg PMI at 11 yr low
- Growth rate of EMs expected to be 2.6% to negative 6%.

#RBI #economy #India
- MPC maintaining accommodating stance till growth revives
- Prodn of most sectors declined rapidly, industrial production shrank by 17%
- Food grain prodn at record, normal monsoon expected
- Kharif sowing higher by 44%, Rabi procurement in full flow
- Farm incomes to improve;
- Merchandise exports plunged 60.3%, imports contracted by 58.6% (worst in many yrs) in Apr
- Reserves increased & at US$487 bn
- Inflation could increase due to supply chain issues; reappraisal of import duties needed
- EM economies expected to face further outflows

#RBItoday
Read 6 tweets
#Thread

What are MSMEs? And why did the #Government set aside ₹3.7Lcr ($49bn) for #MSME support?

As the name suggests, #MSMEs (Micro, Small & Medium Enterprises) are small businesses. Their definition varies by country.

In India, the definition was changed last week.

1/n
Previously, MSMEs were defined according to investment in plant/machinery (if they were in #Manufacturing) or investment in equipment (if they were in #Services).

It went like this:

2/n
Last Wednesday, @nsitharaman announced a new definition for #MSMEs. Manufacturing & Services were clubbed and a new parameter - annual turnover - was added.

Now it goes like this:

3/n
Read 8 tweets
#AatmaNirbharBharatAbhiyan
Based on 👇

Land,Labour,Liquidity&Laws that are not isolationist but inclusive

Ease of Doing Business

DBT,JanDhan,Aadhar, Micro Insurance,Ujjwala Yojana, Ayushman Bharat, PM Awaas Yojana,PM FasalBima Yojana,Krishi Sinchai,Swachh Bharat--Key Landmarks
GST,IBC&PSU Bank Recapitalisation in last 6 yrs,have been big reforms

52606Cr given via #DBT to 41Cr #JanDhan holders

Free wheat&rice to 69Cr ration card holders

18000Cr tax refunds given

Free cylinders to 8Cr #Ujjwala holders

#20lakhcrores #COVIDー19
#atmanirbharbharat
Project DevelopmentCells,working for Promotion of Champion Sectors,in States

#MakeInIndia&Upgradation of Industrial Infra,a success&more will be done to #Decongest economy

3376 SEZs&IndustrialParks with 5 lakhhectares,to be ranked& mapped,in terms of readiness for competition
Read 20 tweets
Gilt MFs - Busting the Trader’s myth

These days many debt MF investors are looking at GILT funds for investment purpose - lets decode the GILT Funds (1/n)

#mutualfunds #gilt #debt
These funds invest in government securities of various maturity periods - thus too less credit risk but factors such as change in interest rate and gsec valuation etc. drive the volatility in NAV of these funds. (2/n)
When Govt of India needs money, the RBI issues fixed-term government securities. These are picked up by the gilt fund manager - he plays on coupon, duration and interest rate outlook. (3/n)
Read 14 tweets
World Vs India !!!
Our handling of Corona was good Vs rest of world. The positive cases, death rates, recovery rates all good. The treatment to the real damage is still unanswered. Remember the world was in lock down and we were also under lock down and now the real test is...
How well we are going to handle economic damage due to this lock down..? The real recovery in the mkt and economy would be purely based on it only. Some eg:-
~ US has recorded 33 mil job losses so far which is approx equal to 10 yr job creation what they have.
~ Their stimulus..
So far is approx 2.7 trillion which is almost equal to India GDP nos.
~ US is printing dollar and may increase it based on the necessity. #Fed has already shown their willingness to inject more liquidity if needed.
~ US will have to bail out more firms in events of failure..
Read 9 tweets
#SupremeCourt bench of Justices NV Ramana, SK Kaul & BR Gavai begins hearing petitions challenging the March 27 notification of the Reserve Bank of India announcing moratorium on loans permitting borrowers to skip EMI from April to June due to #Lockdown in the wake of #Covid19
Justice Kaul: Have the petitioners taken some loan ?

Advocate Shibshankar Saha: This is for the general public

J Ramana-- We are not here to decide whether the scheme is profitable scheme, good scheme, bad scheme. If you're not a borrower ,you don't know anything
J. Kaul: There may be people who have taken loans and who may feel the arrangement is working or not ..kindly do not make balance of litigation into filing such petitions.

J. Ramana: How can you say it's a bad scheme?
Read 9 tweets
RBI has announced Rs 50000 Cr #SpecialLiquidityFacility for #mutualfunds,to ease redemption pressures

#RBI will conduct #Repo operations of 90 days tenor at fixed repo rate

This Special Facility is on-tap,open-ended&will particularly help #DebtSchemes of MFs,witnessing outflows
#SpecialLiquidityFacility for #mutualfunds is available from today,April 27,2020 till May 11, 2020,or up to utilization of allocated amount of Rs 50000Cr whichever is earlier

@narendramodi govt's calibrated approach to calm down frayed nerves,is timely&noteworthy

#coronavirus
Funds availed under this facility shall be used by banks solely for meeting #liquidity requirements of #mutualfunds by 👇

Extending loans

Outright purchase of #Repos

Or against collateral of corporate bonds,commercial papers, debentures&certificate of deposits,held by #MFs👍
Read 6 tweets
4 lesser known truths about the big #Facebook #RelianceJio deal:

1. Facebook struggled with regulation for 3 years in trying to launch #WhatsApp Pay bcoz of privacy issues+blocking by high access of PayTM etc. So FB made a deal with the big daddy of Indian companies with access.
2. The recently launched NUE framework by the #RBI is possibly a big end game being targeted by the partnership. This framework allows for parallel payment infrastructure to UPI being set up countrywide. $5.7 bn is cheap for this scale of access & profit

m.rbi.org.in/scripts/bs_vie…
3. Privacy debate would kick up to the next level, now that whatsapp/facebook data + payment data + telecom data from Jio could be shared. Whatsapp has already cleared the data localization hurdle by setting up servers locally.
Read 4 tweets
Finally, after so much wait, @RBI Governer comes out to provide much needed relief to economy - key announcements thread:

#RBI #economy #rbigovernor
1. Yes, even after all the projections of economic growth slip, India might still stay at the top of global economic growth chart (As per IMF).

#IMF #GDP
2. NBFCs, this time RBI has looked out for you.

TLTRO 2.0 - targeted long term repo operations of INR 50k crore ease the liqudiity issues, specifically for NBFCs.

#NBFC
Read 9 tweets
#rbigovernor Press meet pts:
- MPC advanced its mtg, evaluated macro economic conditions
- Voted for a 75 bps repo rate cut, 4-2 majority
- 5.15% to 4.4%,
- Reverse Repo rate reduced by 90 bps to 4%
- done this imbalanced cut for banks to support lending

#economy #Markets
Contd.
- Need to support growth considering economic conditions
- Will fight #COVIDー19 with measures available
- RBI is at work and in mission mode, monitoring financial conditions, will provide additional liquidity support
- will work for financial stability

#rbigovernor #RBI
Contd.
- FY20 GDP estimates given by CSO is at risk 🙄
- To contain intensity, spread of #CoronavirusOutbreak
- FY21 estimates at great risk
- Risk factors: Supply chain disruptions too high, upside growth impulses through fiscal & monetary policies
- Food inflation to soften.
Read 12 tweets
Debt Markets facing lack of buyers: Since 9th March, 1 yr CD rates have gone up by 50 bps, 2-3 yr AAA PSUs yields have gone up by 50-100 bps, blue chip HFCs like HDFC bond yields have gone up by 70-80 bps & 10 yr corp bond yields too by 50 bps
This is a good time to capture higher yields in AAA rated PSU/Corporate Bond schemes following Constantly Rolling Down strategy with longer duration and no #CreditRisks.
When most Central Banks have cut rates aggressively, #RBI has still kept this option in its armoury and only announced liquidity infusion of Rs.1 lac crore thru LTRO.
Read 7 tweets
1. In the back drop of @YESBANK Bank fiasco and total write off of AT1 Bonds issued by them, it is necessary to understand what is AT1 (aka Perpetual Bonds) and what should the Investors expect. This crisis will have far reaching implications for all future AT1 issuances as well
2. What is AT1 Bonds? An AT1 bond constitutes direct, unsecured and subordinated debt in the issuing bank, ranking junior to the claims of all creditors (including all subordinated creditors) and only senior to common equity. Please remember this
3. Total outstanding of all AT1 issuances by all Banks is close to 91,000 crores (including Rs.38,000 crores by Private Sector Banks like ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, etc.). These figures are as of 23-02-2020
Read 15 tweets
Prioritising Equity over AT1 bond holders in #YesBank draft resolution is a first in this country!
In all fairness @RBI is setting up a bad precedent for the bond industry by subverting their rights. Critical takeaways:
1) Scares away a potential source of capital for all banks
2) Existing AT1 holders will start dumping their stock in fear of similar subversion in future as well.
3) This can lead to a potential escalation in yields. Raising Cost of capital in future for other players
4) There have been cases of PSU bank mergers previously as well
But never have AT1 bond holders suffered like this. Even the interest payments were not missed, leave aside capital being eroded.
5) Completely marking down the value to zero and keeping equity at 10Rs is not a legally tenable course of action.
Read 6 tweets
Coronavirus and India - A thread about the distribution and impact of Coronavirus -

Coronavirus, started in China, is now spreading around the world. India is not decoupled with other nations with regards to the spread of Coronavirus.
Let’s see the distribution & impact of this deadly disease -

#CoronaOutbreak #Coronvirus #ItalyCoronavirus #irancoronavirus #indiacoronavirus
Globally, about 3.4% of reported COVID-19 cases have died. By comparison, seasonal flu generally kills far fewer than 1% of those infected. Check out the Virus & Human death rates -

#COVID2019 #swineflu #SARSCoV2
Read 13 tweets
1)Dear PM @narendramodi Ji,

U claim the Armed forces is like family to you, but the #CAGReport tabled in parliament speak a different story

Spend 5 Minutes to think, they Guard our borders 24x7, 365 Days year, so that u can sleep peacefully+

google.com/amp/s/theprint…

@ItiTish
2) It's unfortunate how the @adgpi is being treated under your rule

The Nation wants to know, Why is defence budgets cut, knowing we can't compromise on the country Security, why there is no money for the Armed Forces, where is all the money going+

@RK_Insight @priyapyadav18
Read 8 tweets
#BSNL started booking net Loss'es post 2008-09.

Who's responsible ?

17-18: -7,993
16-17: -4,793
15-16: -3,880
14-15: -8,234
13-14: -7,020
12-13: -7,884
11-12: -8,851
10-11: -6,384
09-10: -1,822
08-09: +575
07-08: +3,009
06-07: +7,805
05-06: +8,939
04-05: +10,183

#ProfitAndLoss
#AirIndia started booking net Loss'es post 2005-06.

Who's responsible ?

17-18: -5,338
16-17: -6,282
15-16: -4,311
14-15: -6,280
13-14: -6,280
12-13: -5,490
11-12: -7,560
10-11: -6,865
09-10: -5,552

08-09: -8,439
07-08: -9,236
06-07: -541
05-06: +15
04-05: +96

#ProfitAndLoss
#HAL's Profit Before Tax (PBT) is consolidated during the years.

How can someone say that Modi ruined 'HAL' ?

18-19: +3,628
17-18: +3,323
16-17: +3,583
15-16: +3,207
14-15: +1,679
13-14: +3,661
12-13: +3,768
11-12: +3,329
10-11: +2,840
09-10: +2,617

#ProfitAndLoss
Read 7 tweets
#ZeroMDR 1/ Since 2006 I have been the bigget believer and proponent of in digitizing payments - ideally via mobile payments - lord knows I've preached this more than anyone else has! Even my 83-year-old mother is a convert, and I literally refuse to pay anyone in cash!
#ZeroMDR 2/ The benefits of #digitalpayments are spread across a large ecosystem - notably the government, merchants, consumers, banks & Payment Systems Providers (PSPs).

The costs of digital payments are today borne by the banks & PSPs - who pass them on to merchants!
#ZeroMDR 3/
Indirectly merchants pass these on to consumers & have a blended cost. Some explicitly pass these costs to the consumer as a "surcharge".

Today's incentive alignment ensures that cash will continue to be the most (financially) attractive for face2face payments!
Read 18 tweets
India MPC - Initial thoughts
1. No cut was a surprise. I had gone in with 35!
2. Looks like the RBI listened to the market which has been saying that further cuts will not help revive growth.
3. Clearly RBI is satisfied with transmission - 137 in call money and 218 in CPs! /1
India MPC - Initial thoughts
Contd.

4. Inflation per RBI seems a much greater risk than the market sees it. H2 revision from 3.5-3.7 to 4.7-5.1 is massive!
5. Growth revised down from 6.1 to 5 but there is belief that whatever the govt is doing to revive growth is /will work /2
India MPC - Initial thoughts
contd

Bonds have expectedly sold off more than 10 bps. Expect 10 yr to settle around 6.50%. Rupee seems unchanged at 71.57 and Nifty is holding above 12k.
/3
Read 4 tweets
#Moodys has pulled down its growth forecast for FY19 to 5.8%. Only surprise is why it’s not even lower. In the past year growth has collapsed from 8% to 5%. /1
@threadreaderapp

#India #CPI #GDP #RBI #bonds #inflation #ratecut #NBFC #jobs #credit #NPA #NCLT #growth
On the other hand #CPI is now at 4.6%. The laxmanrekha of 4% has been breached. A mix of drought, floods and unseasonal rain is driving food prices up. Core #inflation continues to fall to 3.7% reflecting the slowdown. /2
#India #GDP #RBI #bonds #ratecut #NBFC #jobs #credit #NPA
The wisemen and women of the economy have only one mantra - Cut, Pray, Hope. When in doubt cut rates.135 bps done but transmission is limited. We are told don’t look at nominal, real rates are still high. A single large cut is required. /3
#India #CPI #GDP #RBI #bonds #inflation
Read 16 tweets
1. As the daily hysteria about the decline of Indian economic growth continues , I'll share few unorthodox theories and interesting data trends about everything economic development and...
theprint.in/national-inter…
2...and some of the many fixes—some straightforward and obvious to everyone and some not so much—India can pull to prevent going down the road of low growth rates and start imitating the growth pattern of China, South Korea and Taiwan. #indianeconomy #economicdevelopment #india
3. Most economists earn their living working in sectors that are free of market forces and end user criticism. So time to time we have to dunk on the economists worldwide for being so inept at what they do and for making the subject crude, out-of-touch with reality and...
Read 139 tweets
Hearing the RBI Guv and the #Fed Chair talk over the past 24 hrs two interesting differences come through. Dr. Das is much more confident though reserved in committing to numbers. Jay Powell is more transparent but does not exude confidence in his words. /1

#RBI #India #ratecut
RBI Guv was quite clear that there is limited fiscal space. Wanted spending esp of PSUs to be front loaded. /2

#RBI #India #ratecut
On bond yields he felt the recent spike in yields was largely specific, external event driven. /3

#RBI #India #ratecut
Read 10 tweets
கடந்த காலங்களில் மத்திய அரசு ரிசர்வ் வங்கியிடம் பெற்ற உபரிநிதி எவ்வளவு?

ns7.tv | #SurplusTransfer | #RBI | #CentralGovernment ( 1/3)
கடந்த காலங்களில் மத்திய அரசு ரிசர்வ் வங்கியிடம் பெற்ற உபரிநிதி எவ்வளவு?

ns7.tv | #SurplusTransfer | #RBI | #CentralGovernment ( 2/3)
கடந்த காலங்களில் மத்திய அரசு ரிசர்வ் வங்கியிடம் பெற்ற உபரிநிதி எவ்வளவு?

ns7.tv | #SurplusTransfer | #RBI | #CentralGovernment ( 3/3)
Read 3 tweets
(1/n) Among many things addressed today in Finance Minister's Meet with Press, she addressed there will be development of Credit Default Swap (CDS) Markets in consultation with @SEBI and @RBI RBI. This step was taken following the credit events of IL&FS, DHFL etc in past yr
@sebi @RBI (2/n) Now what is Credit Default Swap (CDS)/ Markets?
CDS is kind of an insurance against a risk of default on a loan by a company. Company – reference entity, default – credit event.
@sebi @RBI (3/n)Why will a seller do that? Coz under such contract buyer will pay a regular amt to seller 4 protection he has bought for his bond, incase of a credit event. Seller will gain incase there is no credit event since he has got regular payment from buyer for his ‘protection’.
Read 17 tweets

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