Sumary of India’s bank stocks pop after the central bank boosts lending to prop up the virus-hit economy:
- An Indian naval officer walks past the logo of India’s central bank, the Reserve Bank of India (RBI), in Mumbai on November 9, 2016..
- Indian banking shares jumped on Wednesday after the central bank introduced measures to boost lending as the coronavirus crisis continues to take its toll on the country..
- RBI announces measures to facilitate lending The Reserve Bank of India will monitor the economic impact of India’s second wave of Covid-19 infections and deploy all resources possible to ease the economic stress, governor Shaktikanta Das said on Wednesday during an unscheduled speech..
- The central bank governor announced plans to inject 500 billion rupees ($6.78 billion) of liquidity to ease access to emergency health services..
- The move would allow commercial banks to borrow money from the central bank through repurchase agreements, or repos, and lend it out to Covid-19-related businesses..
- To boost provision of immediate liquidity for ramping up Covid-related health-care infrastructure and services in the country, the central bank will open a liquidity window of 500 billion rupees ($6.78 billion), with tenors of up to three years at the repo rate that will be available until March 31, 2022, Das said..
- Das explained that under the scheme, banks can provide fresh loans to a variety of businesses and entities including vaccine manufacturers, importers and suppliers of vaccines and Covid-related drugs, as well as manufacturers and suppliers of oxygen and ventilators..
- Banks would be able to lend to borrowers directly or through intermediary financial institutions that are regulated by the central bank and the lenders are expected to create a “Covid loan book”.
- The RBI also announced other measures targeted at helping India’s micro, small and medium-sized businesses and financial entities at the grassroot level that are bearing the “biggest brunt”…