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Ratan Tata-backed energy distribution startup <keyword id="1598562" type="General" weightage="100" keywordseo="repos" source="Orion">Repos</keyword> is expected to grow by close to three-fold to Rs 185 crore in the current fiscal on account of increased traction for its service among business-to-business clients, a top official of the firm said. <keyword id="8449067" type="General" weightage="20" keywordseo="repos-energy" source="Orion">Repos Energy</keyword> founder and CVO Aditi Bhosale Walunj told PTI at the Auto Expo 2023 that the company is in the process of raising Rs 300 crore to fund expansion of business across India as well as a platform to offer carbon-neutral fuels such as ethanol and electric vehicle chargers. "We have been fortunate enough to have Mr Ratan Tata as our initial investor. Last fiscal year we did business of Rs 65 crore. Our business has been growing multifold. This fiscal we expect our top line to be around Rs 185 crore," Walunj said. She said that the company's fuel distribution platform is mainly built around the delivery of diesel but it is now adding new fuels to the platforms to make it available at the doorsteps of end consumers with the help of technology. "Like ATMs, we are providing mobile fuel stations. It is helpful for enterprises to get fuel at the doorstep, check fuel theft, monitor fuel consumption etc. We are now present in 280 cities across India where we have deployed over 2,000 mobile fuel stations. Now we are in the process of raising Rs 300 crore which we will use to further expand our presence and develop technology for the distribution of carbon neutral fuels," Walunj said. Repos recently onboarded management expert Ram Charan on its advisory board for mentoring the company towards growth path. With 40 years of experience, Charan has been a consultant to global organisations like Toyota, GE, <keyword id="6374849" type="General" weightage="50" keywordseo="bank-of-america" source="Orion">Bank of America</keyword>, Honeywell, <keyword id="44373" type="General" weightage="50" keywordseo="aditya-birla-group" source="Orion">Aditya Birla Group</keyword>, Novartis, Fast Retailing (Uniqlo), and Matrix. SEE ALSO: <a href="https://www.businessinsider.in/business/news/paradyes-on-shark-tank-a-startup-so-good-that-sharks-had-to-pitch-their-expertise-to-founders/articleshow/96993620.cms">Colour them impressed: A startup so good that sharks had to pitch their expertise to founders</a> <a href="https://www.businessinsider.in/careers/news/meta-microsoft-vacating-offices-in-seattle-amid-remote-work-layoffs/articleshow/97002350.cms">Meta, Microsoft vacating offices in Seattle amid remote work, layoffs</a> <a href="https://www.businessinsider.in/india/news/pm-modi-flags-off-vande-bharat-train-connecting-secunderabad-with-visakhapatnam-ld/articleshow/97005023.cms">PM Modi flags off Vande Bharat train connecting Secunderabad with Visakhapatnam</a>

Ratan Tata-backed Repos expects to grow three-fold this fiscal to ₹185 cr; raise ₹300 cr

Apart from the decision on the repo rate hike by the Reserve Bank of India's (<keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword>) Monetary Policy Committee (<keyword id="6369693" type="General" weightage="20" keywordseo="mpc" source="Orion">MPC</keyword>) at its upcoming meeting, one can also expect few more things post the discussions. Economic experts expect the <keyword id="15698737" type="General" weightage="20" keywordseo="mpc-to-hike-the-repo-rate" source="Orion">MPC to hike the repo rate</keyword> by 25-35 basis points (bps) with industry lobby body ASSOCHAM also urging the central bank to do the same. Further it will also be interesting to see whether there will be unanimity amongst the members of the MPC on the decisions taken at the ensuing meeting. Post MPC meeting, the RBI Governor Shaktikanta Das is expected to share what the bank has written to the central government as to the reasons for not controlling the inflation and the steps that are being taken to reign in the same. The MPC had met on November 3, to discuss what it would tell the central government on the reasons why it was not able to restrain the inflation. As per the Section 45ZN of the RBI Act, when the central bank fails to meet the inflation target, it shall send a report to the Central government listing: the reasons for failure to achieve the inflation target; remedial actions proposed to be taken by it; and an estimate of the time-period within which the inflation target shall be achieved pursuant to timely implementation of proposed remedial actions. The proceedings of the said MPC meeting have not been made public even though the law provides to the contrary. As per section 45ZK, the RBI shall publish, after the conclusion of every meeting of MPC, the resolution adopted by the said Committee. Further, as per the Section 45ZL of the RBI Act, the minutes of the MPC meeting has to be published on the 14th day after every meeting including: the resolution adopted at the meeting of the MPC; the vote of each member of the MPC, ascribed to such member, on resolutions adopted in the said meeting; and the statement of each member of the MPC under sub-section (11) of Section 45ZL on the resolutions adopted in the said meeting. On the issue of unanimity amongst the MPC members, at the September MPC meeting, Dr. Ashima Goyal voted against the resolution to hike the repo rate by 50 basis points to 5.90 per cent. Goyal was for a hike of 35 basis points and explaining his reasons voted against the resolution. However, the resolution was passed by a 5:1 majority. In India, the retail inflation rose to 7.41 per cent in September. At the same meeting, another member Prof. Jayanth R. Varma voted against the second part of the resolution on the withdrawal of accommodation to ensure inflation remains within the target. Varma said the MPC should now pause rather than focus on further tightening. On the issue of upward rate revision, he was for upward revision by 60 basis points instead of 50 basis points that was proposed. As the difference between the two was only marginal Varma voted in favour. Be that as it may, the expectation of the MPC meeting is that the repo rate hike will be a moderate one and range between 25-35 bps. The RBI has hiked the repo rate by 190 bps from four per cent to 5.90 per cent. Now MPC will take into account the gross domestic product (GDP) growth estimates, the foodgrain production estimates, inflation projection, global economic activity and other factors. "The RBI will be presenting the monetary policy against the backdro p of GDP growth slowing down as well as inflation being high above six per cent," Madan Sabnavis, Chief Economist, Bank of Baroda said. According to him, the MPC will continue with rate hikes this time though the magnitude will be lower - probably 25-35 bps, "More specifically we do believe that the terminal repo rate for th e financial year will be 6.5 per cent, which means there will be one more rate hike in February. It is unlikely to change the stance and the withdrawal of liquidity will continue," he added. "We expect a 35 bps rate hike in the upcoming meeting. The Consumer Price Index (CPI) inflation is likely to moderate further in the coming months and slip below six per cent by the end of the fiscal year," Rajani Sinha, Chief Economist, CARE Ratings told IANS. She also said the Wholesale Price Index (WPI) has also fallen sharply from 16 per cent in May/June to around eight per cent. "The fall in global commodity prices comes as a big relief. However, the concern is that core inflation in India still remains high above six per cent. Food inflation and specifically cereal inflation is also high," Sinha pointed out. This, in turn, will put upward pressure on household inflationary expectations which is already at a high of around 10 per cent. Hence, while there is some reprieve on the inflation front, RBI would remain vigilant, she added. On the growth front, high frequency economic indicators like auto sales, GST collection, e-way bill, PMI continue to indicate healthy recovery. However, some consumption indicators like IIP consumer durables and non-durables remain weak, Sinha said. Moreover, external demand is weakening as the global economy slows down, Sinha said. According to K. Joseph Thomas, Head Research, Emkay Wealth, as far as interest rates go, the trajectory of domestic inflation is of prime importance. "The pressure seems to be easing on the price level, but the comfor t that can be drawn from fuel prices is far from real. The upside risks in fuel prices continue to be a concern," he said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/investment-intent-of-10-5-lakh-crore-received-at-odisha-biz-summit/articleshow/95974094.cms" style="">Investment intent of ₹10.5 lakh crore received at Odisha biz summit</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://businessinsider.in/stock-market/news/indian-markets-open-the-week-on-a-mixed-note-sbi-maruti-suzuki-inox-green-energy-among-stocks-in-focus/articleshow/95991254.cms" style="">Indian markets open the week on a mixed note – SBI, Maruti Suzuki, Inox Green Energy among stocks in focus</a>

RBI's MPC meeting could throw up a lot more than just a rate hike, say experts

New Delhi, May 24 (IANS) Pune-based energy distribution startup, Repos Energy plans to manufacture and sell around 3,200 mobile petrol pumps in the current financial year. In a statement, the company said it also plans to get on board over 1,200 operators from across the country during FY 2020-21. "At present India needs over a lakh of fuel stations across the country to meet the demand. However, this wouldn't be feasible due to the availability of land and the huge costs involved. There are over 55,000 fuel stations which are not sufficient," says Chetan Walunj, co-founder of Repos Energy. The startup is backed by Ratan Tata, Chairman Emeritus of Tata Group, who came on board as a mentor along with Tata Motors who have helped in making these Repos Mobile Petrol Pumps safe and efficient, the statement said. Led by IoT, a Repose Petrol Pump can safely and conveniently deliver fuel to the end customers through a simple mobile application, the company said, adding that it is integrated with cloud technology to get real-time updates. "It has highly sensitive censors called ATG to get accurate quality and quantity of diesel. Enabled with GPS and Geo-fencing, this mobile petrol pump can be monitored in real-time, to ensure the utmost transparency," it said. Co-founder Aditi Bhosale Walunj said: "We have a fleet of 320 vehicles out of which over 100 are fully operational and working to deliver fuel across India. But now, our target is to build and sell 3,200 RMPPs in one year." --IANS rrb/sn/vd

Repos Energy plans producing over 3,000 mobile petrol pumps in FY21

<ul><li>The Reserve Bank of India has announced that it has brought in startups and renewable energy into the purview of Priority Sector Lending. </li><li>For loans with gold ornaments as pledges, the permissible loan to value ratio (LTV) has been increased to 90%, from the earlier 75%. </li></ul>The Reserve Bank of India has announced that it has brought in startups under the purview of Priority Sector Lending. <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> governor <keyword id="6359111" type="UNKNOWN" weightage="20" keywordseo="Shaktikanta-Das">Shaktikanta Das</keyword> today in his Monetary Policy speech said, “With a view to aligning the guidelines with emerging national priorities and bring sharper focus on inclusive development, the Priority Sector Lending (PSL) guidelines have been reviewed.” Categories that have been under PSL are agriculture, MSMEs, education, housing, social infrastructure among others. This move will now benefit startups, who can borrow from banks with much more ease and open up another avenue for funds. The steps taken by the RBI will help the under stress companies, who have been hit by the coronavirus pandemic. Meanwhile, for renewable energy sectors including solar power and compressed bio-gas plants, which already fell under the PSL category, the cap has been increased for borrowing. The RBI has also amended the priority sector guidelines to do away with regional disparity. Das said that while higher weightage will be assigned for incremental priority sector credit in the identified districts having lower credit flow, a lower weightage would be assigned in identified districts where the credit flow is comparatively higher. But that’s not alone, the RBI governor also gave a <keyword id="1222971" type="PERSON" weightage="20" keywordseo="liquidity-boost">liquidity boost</keyword> to borrowers as he said that with respect to the loans sanctioned against pledges of gold ornaments, the permissible loan to value ratio (LTV) has been increased to 90%, from the earlier 75%. This means you can now borrow a larger amount against your gold jewellery. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-governor-shaktikanta-das-leaves-repo-rate-unchanged-to-check-inflation/articleshow/77387591.cms">‘Watchful’ RBI leaves repo rate unchanged to keep inflation in check</a> <a href="https://www.businessinsider.in/stock-market/markets/news/manappuram-finance-and-muthoot-finance-share-price-chart-after-after-rbi-increased-the-loan-to-value-ratio-on-gold/articleshow/77388739.cms">Manappuram and Muthoot Finance shares jump nearly 5% after RBI increased the loan to value ratio on gold to 90%</a>

RBI has opened a pipeline of funds for startups, home buyers and green power producers too

Barely a day after <keyword id="64190" type="POSITION" weightage="80" keywordseo="RBI-Governor">RBI Governor</keyword> suggested in a public <keyword id="23897" type="ORGANIZATION" weightage="80" keywordseo="forum">forum</keyword> that quick rate cuts might be difficult to hand out, despite inflationary pressures coming down and no signs of a growth uptake given the dismal January core sector data, he surprised the <keyword id="35199" type="UNKNOWN" weightage="80" keywordseo="stock-markets">stock markets</keyword> with a 25 basis point cut in repo rate to 7.50% from 7.75%. 
 
The Repo Rate is the rate at which the central bank lends to commercial banks in the event of a shortfall of funds. As most experts suggest the Repo Rate cut will create greater liquidity in the market, clearing the investment log-jam to a certain extent for crucial sectors such as infrastructure that the government gave top-billing to as far as driving growth was concerned. 
 This reduction, coming in almost a month before the slated monetary policy action on April 7, suggests that Rajan is clearly towing the Government’s outlook on growth and fiscal consolidation. In the statement released by the central bank, mentioning the measures announced by <keyword id="6355261" type="POSITION" weightage="80" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="80" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> in his <keyword id="117156" type="UNKNOWN" weightage="80" keywordseo="Budget-speech">budget speech</keyword> on February 28, Rajan says, “The government has emphasized its desire to clean up legacy issues which gave a misleading picture of the true extent of fiscal rectitude, and has also moderated the optimism in its projections. To this extent, the true quantum of fiscal consolidation may be higher than in the headline numbers.’ 
 He also goes onto commend the government on three other factors, all of which he says have led to the decision for the rate cut, the second one since January 2015. Rajan says, “The government is transferring a significantly larger amount to the states, without entirely devolving responsibility for <keyword id="6357455" type="EVENT" weightage="80" keywordseo="Funding">funding</keyword> central programmes. To the extent that state budget deficits narrow, the general <keyword id="6365485" type="UNKNOWN" weightage="80" keywordseo="fiscal-deficit">fiscal deficit</keyword> will be lower. Furthermore, supported by lower international energy prices, there is a welcome intent to shift from spending on subsidies to spending on infrastructure, and to better target and further reduce subsidies through direct transfers. Finally, the central government has signed a memorandum with the Reserve Bank setting out clear <keyword id="22195" type="COMPANY" weightage="80" keywordseo="Inflation">inflation</keyword> objectives for the latter. This makes explicit what was implicit before – that the government and the Reserve Bank have common objectives and that fiscal and monetary policy will work in a complementary way. In sum, then, the government intends to compensate for the delay in fiscal consolidation with a commitment to an improvement in the quality of adjustment.” 
 
 The other very important factor has been a strong Rupee. While an excessively strong currency is undesirable, Rajan says that, a strong currency does hold disinflationary impulses. 
 However, what could prove to be a further impetus and advantage for the <keyword id="6387077" type="ORGANIZATION" weightage="80" keywordseo="Narendra-Modi-government">Narendra Modi Government</keyword> is that Rajan maintains that going forward, ‘softer readings on inflation are expected to come in through the first half of 2015-16 before firming up to below 6 per cent in the second half. The fiscal consolidation programme, while delayed, may compensate in quality, especially if state governments are cooperative. Given low capacity utilisation and still-weak indicators of production and credit off-take, it is appropriate for the Reserve Bank to be pre-emptive in its policy action to utilise available space for monetary accommodation.’ This bides well with the <keyword id="34412" type="ORGANIZATION" weightage="80" keywordseo="economy">economy</keyword>, given that most industry experts and analysts believe that to be able to take the economy out of its current rut, a further reduction by almost 50 basis points is required, especially to get <keyword id="6362476" type="ORGANIZATION" weightage="80" keywordseo="investments">investments</keyword> flowing into stagnant infrastructure projects, which will be the key to jumpstarting India’s economic revival 
 The central bank also said that going forward the RBI will seek to bring the <keyword id="143728" type="UNKNOWN" weightage="80" keywordseo="inflation-rate">inflation rate</keyword> to 4% by the end of a two year period starting fiscal year 2016-17.

RBI
Repo Rate Cut: ‘Rate cut Raghu’ provides ‘Advantage Jaitley’

<ul><li><keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> governor <keyword id="6359111" type="General" weightage="50" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> sounded a cautionary note for the <keyword id="11929899" type="General" weightage="20" keywordseo="global-economy" source="Orion">global economy</keyword>, underlining that <keyword id="14643867" type="General" weightage="20" keywordseo="globalized-inflation" source="Orion">globalized inflation</keyword> could unravel it.</li><li>The pandemic had already put immense stress on global supply chains, and now the Russia-Ukraine war has further worsened this situation, Das implied.</li><li>RBI made the statement while announcing the third repo rate hike since May, taking the total to 140 basis points.</li></ul>Inflation remains a key concern for RBI guv Shaktikanta Das, so much so that he said globalized inflation is a threat to the global economy itself, while presenting the latest <keyword id="6357126" type="General" weightage="50" keywordseo="monetary-policy" source="Orion">Monetary Policy</keyword> report. “Successive shocks to the global economy are today taking their toll in terms of globalized inflationary surges, tightening of financial conditions, sharp appreciation of the US dollar and lower growth across geographies,” Das said, while <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-50-basis-point-to-5-4-as-inflation-is-still-uncomfortable/articleshow/93362291.cms">announcing a 50 bps repo rate hike</a>, in line with analyst expectations. “50 bps rate hike has become the new normal,” Das quipped, alluding to the rate hikes by the US Fed, Bank of England, European Central Bank and RBI itself. According to him, 75-100 basis points hikes might soon be what 50 basis point hikes once were. This is the third rate hike by the RBI, in lockstep with the US Fed, showing <a href="https://www.businessinsider.in/finance/news/rbi-and-us-fed-policies-are-more-similar-than-you-think/articleshow/93329850.cms">the policies of these two central banks are more similar than they are different</a>. “Emerging market economies are facing a rapid tightening of external financial conditions, capital outflows, currency depreciations and reserve losses simultaneously. Some of them are also facing mounting burdens of debt and default. Elevated food and energy prices and shortages are rendering their populations vulnerable to insecurity of livelihood,” Das said. Here's what Das is talking about – since the beginning of 2022, <a href="https://www.businessinsider.in/stock-market/news/foreign-inventors-hit-a-record-with-selloffs-in-may-and-they-will-keep-exiting-say-experts/articleshow/91934731.cms">foreign investors have pulled out ₹2.9 lakh crore</a> from the Indian markets, the <a href="https://www.businessinsider.in/finance/news/rupee-at-80-heres-how-a-falling-rupee-could-impact-indias-current-account-deficit/articleshow/92897064.cms">Rupee has depreciated from 74.5 to 79.3</a> and the <a href="https://www.businessinsider.in/finance/news/rbis-efforts-to-save-rupee-has-made-a-big-dent-in-its-forex-reserves/articleshow/92654557.cms">RBI has spent $40 billion in a bid to save the Rupee</a> from a freefall, with another $40 billion set aside. <div type="Article" hostid="261" msid="93329850" title="RBI and US Fed policies are more similar than you think" mstype="2" mssubtype="0"></div> “Multilateral institutions, including the <keyword id="6366068" type="General" weightage="50" keywordseo="international-monetary-fund" source="Orion">International Monetary Fund</keyword> (IMF), have revised global growth projections downwards and highlighted rising risks of <keyword id="6357558" type="General" weightage="20" keywordseo="recession" source="Orion">recession</keyword>. The pandemic and the war have ignited tendencies towards greater fragmentation, reshoring of supply chains and retrenchment of capital flows, which will pose long-term challenges for both globalisation and the global economy,” said Das, sounding caution that this is a disquieting string of events. Das dismissed concerns about Taiwan, saying it is premature to call it a black swan event. “Our trade with Taiwan is miniscule at 0.7% of the total trade. The impact on India would be very, very negligible,” he said. On a slightly more optimistic note, Das said that he expects the current account deficit to remain within sustainable limits, without giving any specifics. He underlined three factors – GDP growth projections, improved exports and a decline in external debt – as positives for the Indian economy in 2022-23. Going by what Das said, it is quite likely that the RBI could announce a fourth rate hike of 35-50 bps, with the repo rate inching closer to 6% by the end of 2022. Here are a few other takeaways from the press conference: <ul><li>We can’t assess the current account deficit for FY23 as a whole on the basis of one month’s merchandise trade data.</li><li>Current account deficit will be manageable, RBI has the ability to manage the gap.</li><li>So far as current inflation is concerned, I don’t think demand is a factor. It’s primarily due to supply issues and imported inflation. Our monetary policy actions have not fueled domestic inflation.</li><li>There is a small decline in exports due to a decline in exports of petroleum products.</li><li>Inflation has peaked and will moderate, but is at unacceptably high levels.</li></ul>SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-50-basis-point-to-5-4-as-inflation-is-still-uncomfortable/articleshow/93362291.cms">RBI hikes repo rate by 50 basis point to 5.4% as inflation is still ‘uncomfortable’</a> <a href="https://www.businessinsider.in/business/telecom/news/heres-how-much-mobile-bills-can-increase-from-5g-network-service/articleshow/93312184.cms">5G services might kickoff in October but your mobile bills could rise sooner</a> <a href="https://www.businessinsider.in/business/news/mumbais-real-estate-sector-registers-its-best-july-in-a-decade-even-as-home-loan-interest-rates-rise/articleshow/93272015.cms">Mumbai’s real estate sector registers its best July in a decade even as home loan interest rates rise</a>

Globalized inflation is a threat to global economy itself, says RBI guv Das

<ul><li>Economists at Bank of Baroda in their macro outlook for FY24 see India’s <keyword id="598729" type="General" weightage="20" keywordseo="cpi-inflation" source="Orion">CPI inflation</keyword> moderating to 5.5% as opposed to 6.7% in FY23. </li><li>India’s GDP is expected to grow between 6-6.5% in FY24. </li><li><keyword id="6356076" type="General" weightage="20" keywordseo="indian-economy" source="Orion">Indian economy</keyword> expected to stay resilient; headwinds such as global slowdown and <keyword id="51549" type="General" weightage="80" keywordseo="el-nino" source="Orion">El Nino</keyword> factored in. </li></ul>After raising <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword> by 250 basis points in the last financial year (FY23), India’s central bank could now cut its lending rate twice in the second half of this year (FY24), say economists at Bank of Baroda. This means that the repo rate, which stands currently at 6.5% will come down to 6%. In a webinar titled ‘Indian Economy FY24 — A Prognosis’, economists at Bank of Baroda said that they do not expect any rate action in the first half of FY24, but believe that the Reserve Bank of India (RBI) may effect two rate cuts amounting to a 50 basis point cut in the second half of the financial year. “Generally, we expect stance to change before rate action, and now RBI is working on withdrawal of accommodation. I would be looking at the stance changing to neutral before the rate cut,” said Madan Sabnavis, chief economist at Bank of Baroda on Friday. The prediction comes on the back of the belief that India’s inflation reading will continue to moderate. The economists expect CPI, or the consumer price index, inflation to moderate to 5.5% as opposed to 6.7% seen in FY23. “The upside risks to this are a favourable base and lower energy prices globally. If the El Nino threat persists, it may affect the summer crops,” said Aditi Gupta, an economist at Bank of Baroda. India’s growth gears BoB economists expect India’s GDP to grow anywhere between 6-6.5% in FY24 which is slightly higher than IMF’s predictions of 5.9%. However, a report by SBI Ecowrap expects the GDP growth at 7.1% – in line with NSSO’s predictions of 7% growth. It is noteworthy that SBI Ecowrap says that India is likely to continue its showdown in pursuing a different pathway of zeroing in on drivers of growth, looking for a renewed surge in resilient manufacturing while supporting the services sector to embrace enhanced efficiency. “Locally, domestic consumption and investment stand to benefit from stronger prospects for agricultural and allied activities, strengthening business and consumer confidence, and strong credit growth while supply responses and cost conditions are poised to improve as inflationary pressure is easing,” SBI said. The challenges BoB believes that the Indian economy will continue to be resilient, but has also taken into account other factors like expected slowdown in the global economy. “Unlike China, India is primarily a domestic oriented economy but it needs rural demand, job creation and other factors to play out,” said Sabnavis adding that there is uncertainty around the agriculture sector, due to the El Nino phenomenon. In their presentation, BoB economists noted that downside risks to agriculture are – a possible heatwave from El Nino impact, <keyword id="484499" type="General" weightage="50" keywordseo="unseasonal-rainfall" source="Orion">unseasonal rainfall</keyword>, late departure of the monsoon and spatial distribution of rainfall. India’s bank credit is expected to grow anywhere between 12-14% in FY24, matched by a healthy growth of 11-12% in deposits. They also expect FPI inflows to turn positive after being in the negative zone in FY23. Quantitative tightening in the international markets will also present its set of challenges. While investors will be left with fewer funds to choose from, the risk of recession might make them look for safe haven investments. Economists believe that both will be deciding factors in how much foreign inflows (FDI as well FPI) India sees in the current financial year. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/nykaa-is-going-strong-on-physical-stores-as-it-aims-for-an-optimum-offline-online-mix/articleshow/100506296.cms">Nykaa is going strong on physical stores as it aims for an ‘optimum offline-online mix’</a> <a href="https://www.businessinsider.in/india/news/indians-want-to-spend-the-2000-note-but-it-doesnt-look-easy/articleshow/100496839.cms">Indians want to spend the ₹2,000 note but it doesn’t look easy</a>

With inflation cooling, RBI may slash interest rates by 50 bps this financial year

<keyword id="640142" type="General" weightage="100" keywordseo="housing-finance-company" source="Orion">Housing Finance Company</keyword> HDFC has increased its Retail Prime Lending Rate (<keyword id="413108" type="General" weightage="50" keywordseo="rplr" source="Orion">RPLR</keyword>) on housing loans by 5 basis points. The revision would come into effect from Wednesday itself. The upward revision in rates will essentially lead to an increase in EMIs for borrowers. The hike in rates came close on the heels of central bank <keyword id="30067" type="General" weightage="50" keywordseo="rbi" source="Orion">RBI</keyword>'s recent hike in repo rate by 40 basis points, besides giving indications it would raise rates further in the upcoming monetary policy review meets. On Wednesday, <keyword id="62034" type="General" weightage="50" keywordseo="punjab-national-bank" source="Orion">Punjab National Bank</keyword> (<keyword id="47268" type="General" weightage="50" keywordseo="pnb" source="Orion">PNB</keyword>) too raised its marginal cost of funds-based lending rate by 15 basis points with immediate effect. Recently, banks such as <keyword id="13222" type="General" weightage="50" keywordseo="sbi" source="Orion">SBI</keyword> and <keyword id="6358007" type="General" weightage="50" keywordseo="bank-of-baroda" source="Orion">Bank of Baroda</keyword> too have hiked their lending rates across various tenures, as per reports. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/tech/mobile/news/moto-g82-5g-expected-to-launch-in-india-on-june-9-expected-price-specs-and-everything-you-need-to-know/articleshow/91919825.cms">Moto G82 5G expected to launch in India on June 9 – expected price, specs and everything you need to know</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/cryptocurrency/news/an-indian-home-can-live-for-a-year-with-the-energy-it-needs-to-mine-a-single-bitcoin/articleshow/91916128.cms">An Indian home can live for a year with the energy it needs to mine a single Bitcoin</a>

HDFC raises lending rates on housing loans by 5 basis points

<ul><li>In the global fight against high inflation, India’s story stands out because both monetary and fiscal policies were deployed early. </li><li>India’s inflation problem is also domestically driven in that a large part of the recent rise in the CPI print is because of surging food prices, which account for ~40% of the inflation basket. </li><li><keyword id="6359483" type="General" weightage="80" keywordseo="crisil" source="Orion">CRISIL</keyword> expects CPI inflation to average 6.8% this fiscal, versus 5.5% last fiscal. </li><li>Expect the next monetary policy review in December to announce a 25-bps hike at least. </li></ul>In the global fight against high inflation, India’s story stands out because both monetary and fiscal policies were deployed early. That’s unlike systemically important global central banks, which have been quite the lone agents fighting for price stability in their remits. Slowly, however, the fiscal policy tool is being brought to bear, and such coordinated approaches would continue till inflation is tamed unequivocally. The current inflation problem is largely supply-side driven — exogenous for many economies — so controlling it has been a fiendish challenge. The pressures first began to rise with the post-pandemic global economic recovery that drove up prices of oil and commodities. This spilled over to fuel and parts of core inflation (transport and communications-related), which together form ~60% of India’s Consumer Price Index (CPI)-based inflation. The Russia-Ukraine conflict aggravated matters by creating shortages in commodities, including energy. Prices of some commodities have moderated since, but their cost of import has stayed high because of a sharp depreciation of the rupee against the dollar. But India’s inflation problem is also domestically driven in that a large part of the recent rise in the CPI print is because of surging food prices, which account for ~40% of the inflation basket. Weather-related disturbances — the heat wave in April and May, delayed arrival followed by a belated withdrawal of southwest monsoon in some agriculturally important geographies — have hurt production and lifted prices of wheat and rice. All that, and elevated prices of pesticides, animal feed, diesel and freight have meant the pressure on food prices has stayed high. So much so, food inflation is contributing ~45% to the rise in CPI inflation print. There is little the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (RBI) can do to mitigate the rise in food and fuel inflation. While it aims to keep CPI inflation in the 2-6% band, the gauge has stayed well above this range for nearly nine months — despite its <keyword id="6375120" type="General" weightage="50" keywordseo="monetary-policy-committee" source="Orion">Monetary Policy Committee</keyword> (<keyword id="6369693" type="General" weightage="50" keywordseo="mpc" source="Orion">MPC</keyword>) raising the repo rate by 190 basis points (bps) between April and October. To be sure, the hikes focus on taming inflation expectations to cut the second-round impact from the demand-side. <div type="image" title="Dipti Deshpande" msid="95234196" hostid="261"></div> However, the hikes are unlikely to lower inflation immediately for two reasons. One, most of the inflationary pressure continues to be from the supply side, where interest rates have no direct impact. Two, interest rate transmission works with a lag of around eight to nine months. It can thus be said that India’s fiscal policy measures are cushioning price pressure more, which sets it apart from other major economies. These include import duty reduction in edible oils, excise duty cuts on petrol and diesel, ban on wheat exports, duties on rice and steel exports, and purchase of cheaper Russian oil. Another seminal fiscal countermeasure has been the PM Garib Kalyan <keyword id="268119" type="General" weightage="80" keywordseo="ann-yojana" source="Orion">Ann Yojana</keyword>, or the food security welfare scheme. This has helped ease some pain at the bottom of the pyramid through allocation of 1,122 lakh metric tonnes of foodgrains to 80 crore beneficiaries over 28 months. Interestingly, in this period, inflation in foodgrains (mainly rice and wheat) rose an average 6% (peaking at 7% in April) compared with 4% in the fiscal before Covid-19 struck. To be sure, some pressures on food inflation will moderate as the kharif harvest hits the market. Also, for now, global food prices are softer so there could be some positive rub-off. But uncertainty on the food supplies will remain as long as <keyword id="6358826" type="General" weightage="20" keywordseo="russia" source="Orion">Russia</keyword> and Ukraine remain in conflict. But prices of rabi crops like wheat and tur/arhar, which will be harvested next April, could remain under pressure. Similarly, fuel inflation could stay stickily high for longer as the weaker rupee adds to the impact of elevated global energy prices. Then there is core inflation — comprising 54% of the CPI basket — which is already high at 6%. As the ongoing economic recovery broad-bases and pricing power returns, manufacturers will start passing on higher input prices, which will crank up this print. Consequently, CRISIL expects CPI inflation to average 6.8% this fiscal, versus 5.5% last fiscal. The first half average was 7.2%, so that number will likely descend in the second half, assuming no shocks. Yet, it will continue to stay above the RBI’s upper tolerance band. Ergo, expect the next monetary policy review in December to announce a 25-bps hike at least. Given the myriad moving parts, it’s an unenviable job for central banks. Dipti Deshpande is <keyword id="192730" type="General" weightage="80" keywordseo="principal-economist" source="Orion">Principal Economist</keyword>, CRISIL Ltd. Views are personal

You Searched For "repos energy" and got 9 results

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