Plan and Policy

Plan & Policy

Big banks avoid hiring spree despite boom in trading

Market trading is booming at US and European banks, thanks to Donald Trump and Brexit, and yet the glory days of dealing rooms the size of football pitches remain as distant as ever. Scarred by the 2007-09 global financial crisis and a subsequent regulatory clampdown, cost-conscious banks aren't taking on more traders, uncertain whether the revival will last.

Gestamp eyes 20% growth with new Pune plant

Gestamp, a Spanish multinational that designs metal components for the passenger car industry, is eyeing 20 per cent annual growth in India for its hot stamping-based components. The company, which has set up a brand new Rs 260-crore hot stamping factory in Pune, has already got orders to take care of two-thirds of its capacity, though commercial production would begin only in May.
The new facility at Talegaon industrial belt in Pune is the company's third in the country, where it has invested a total of Rs 1,100 crore since it entered India in 2008.

SBI General targets Rs 7K cr premium in 5 years

SBI General Insurance expects its gross written premium (GWP) to grow to Rs 7,000 crore in next five years. The company has identified crop insurance, retail health, SME and home as high-growth areas.

Gold futures volume nosedives 71%: WGC

Since the introduction of Commodity Transaction Tax (CTT) in 2012 and the NSEL scam in 2013, gold futures volume has dropped 71 per cent. The World Gold Council finds that commodity transaction tax will become redundant as transactions become digital and accountable.

IndusInd-Bharat Financial deal would benefit both: Analysts

A buyout of the country’s largest micro finance institution (MFI) Bharat Financial Inclusion by private lender IndusInd Bank, if materialises, could be a win-win. According to analysts, a buyout of Bharat Financial (formerly SKS Microfinance) would provide IndusInd Bank a large distribution network, huge customer base, a quality loan portfolio, and help boost its growth and profitability margins.
Bharat Financial on the other hand could benefit by scaling up its business, get access to a host of banking products and cheaper access to funds.

Will he, won’t he Keep your fingers crossed till 2.30 pm

As the rate-setting monetary policy committee (MPC) of the Reserve Bank of India began its third review meeting on Tuesday, expectations of a possible rate cut by the central bank are mixed.
Experts were divided if the RBI governor-led panel will recommend cut in interest rate by 0.25 per cent to give fillip to growth or maintain status quo because of inflationary pressure from rising oil prices.

Bank stocks outperform key indices

Bank stocks, by and large, outperformed the market benchmarks in the past three month period, which also saw banks getting surplus deposits due to demonetisation of high value currency notes of Rs 500 and Rs 1,000.
The BSE Bankex gave a return of 6.23 per cent in the last three month period as against Sensex and Nifty 50 giving returns of 3.5 per cent.
In the run up to the budget, banking stocks’ universe gained as the BSE Bankex index was up 7.53 per cent between January 1 and February 1.

25 basis points cut in repo rate likely this time

There is a high likelihood of a 25 bps cut in the repo rate in the upcoming policy review. The CPI inflation in the ongoing quarter is expected to remain below the forecast of 5 per cent. Moreover, the Union Budget for FY2018 has balanced fiscal consolidation with increased capital spending, which would revive growth in a non-inflationary manner.

Central bank may cut rate and go for a long pause after that

The easing inflation trajectory may prompt the Reserve Bank of India (RBI) to cut the policy rate by 25 basis points (bps) on Wednesday. However, this would be followed by a long pause on the back of uncertainty in global commodity prices, looming Fed rate hike, besides domestic factors like secondary impact of the GST and house rent allowance from the 7th pay commission—all this could put pressure on inflation, going forward.