India’s bank stocks pop after the central bank boosts lending to prop up the virus-hit economy


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”…

Want to know more click here go to source.

From -
Generic selectors
Exact matches only
Search in title
Search in content

Site Language

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.