RBI marks up bank rate to 11 per cent
The RBI has raised the bank rate by a steep two percentage points from nine to 11 per cent effective January 17. There will be a corresponding rise in the interest rate on export credit refinance and general refinance. Other steps forming part of the new RBI package are: Hike in the Cash Reserve Ratio (CRR) by 0.5 from 10 to 10.5 per cent effective the fortnight beginning January 17 (as a result resources of banks to the extent of Rs. 2,500 crores would be impounded); cut in the export refinance limit from 100 to 50 per cent of the increase in outstanding export credit eligible for refinance over the level of such credit as on February 16, 1996; the General Refinance limit pruned from one per cent to 0.25 per cent of fortnightly average outstanding aggregate deposits in 1996-9; and mark-up in interest rate on fixed rate repo being announced today from seven to nine per cent.
Re gains ground
The spot rupee gained, forwards surged and securities crashed after the late evening policy announcements from the Reserve Bank of India. The rupee which was ruling around 40.17/20 against the dollar after active trading ceased around 4.30 p.m., moved up noticeably higher to quote around 40 after the RBI policy moves came on the wires. Stray quotes of even 39.75/95 were reported, though it is unlikely that any deals would have gone through after around 4.30 p.m., dealers said.
Auto Expo: Rs 5.6-cr worth orders booked on first day
The fourth Auto Expo currently on, has booked orders worth Rs. 5.6 crores on the very first day of its opening, a press release from the organisers said. Additionally, business enquiries worth Rs. 186.7 crores were made.