#RBIPolicy at 12pm today,is likely to keep status quo on #REPO rate, which was last lowered by 40bps in May 2020,to 4%
In 2020,REPO cut by a total of 115bps
In 2019 REPO cut by 135bps
What may weigh on #MPC's mind is #Inflation,which was 6.09% in June 2020 Vs 5.84%,in March'20
Some like #ICRA predicting 25bps REPO cut,saying #RBI may want to be ahead of the curve,despite build up of inflationary pressures
Well,10 Yr #BondYield was 5.83% y'day
Today 10 Yr@5.84%--Bond markets are clearly not expecting rate cut
#REPO at 4%,is already lowest in 20yrs
As expected, #RBIPolicy leaves #REPO& Reverse REPO unchanged
Right thing to do,as further reduction in rates at this stage, would have distorted #YieldCurve
Already,3 month #MCLR of #SBI is 6.65%& 1 yr at 7%
#MonetaryTransmission is happening,so more cuts not needed currently
Talking of Banks,#CanaraBank reported good numbers with profit up 23.5% at Rs 406.24Cr,for June qtr
#Provisions&contingencies were up at 3826.34Cr,Vs 1899.13Cr YoY
Of this,provisions for #NPAs were 3549.99Cr,Vs 2282.70Cr last year
Net NPAs fell from 5.35%,to 3.95%
Overall 👍
#BankofIndia posted stellar Nos,for June qtr,with profit up over 3x,at 843.60Cr
Provisioning for bad loans fell to 766.62Cr,Vs 1873.28,YoY
Contingencies&provisions fell to 1512.07Cr,Vs 1911.98Cr YoY
#GrossNPAs fell from 16.5% to 13.91%,while #NetNPAs fell from 5.79% to 3.58%
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