Banking Current Affairs 2017

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RBI cuts repo rate and CRR, slashes growth forecast to 5.5%

The Reserve Bank of India (RBI) eased its tight monetary policy by slashing its key interest rates by 0.25% and released Rs 18,000 crore additional liquidity into the system to stimulate growth through reduced cost of borrowing.

RBI cut the Repo Rate by 0.25% to 7.75% and Cash Reserve Ratio (CRR) by similar margin to 4%.

The cut in repo rate is expected to bring down the borrowing rates individuals and corporate. The slash in CRR, which is the portion of deposits that banks have to keep with RBI, would enhance the availability of funds.

The RBI, however, has cut down the growth projections for the current financial year to 5.5% from its earlier estimate of 5.8%.


Exide Industries to acquire ING stake in Indian life insurance joint venture

Dutch banking and insurance group ING has decided to sell its 26% stake in an Indian insurance venture to local partner Exide Industries.

ING is in the process of selling all its Asian insurance and investment management operations. Exide would acquire ING’s 26 % percent in ING Vysya. It would also buy 24% from two other private Indian investors – Enam Group and Hemendra Kothari Group – for a total of about 5.5 billion rupees ($102 million).

Within the period of a year, ING is second company to exit Indian insurance market after New York Life sold its 26% stake in a life insurance joint venture with Max India to Japan’s MS&AD for about $530 million.

Why are these companies making exit from India?

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