As expected, the Indian economy picked up pace in Oct-Dec, but the rate of expansion marginally missed forecasts. At 6.2%, the GDP growth for the third quarter of 2024-25 (Apr-Mar) might be 60 basis points higher than 5.6% in Jul-Sept, but it does little to meaningfully lift economic sentiment and economists continue to expect the Reserve Bank of India's Monetary Policy Committee to lower the repo rate once again in April.Register to read
Given the rising value of gold as an asset class, it is likely to serve as an "important portfolio diversification mechanism" in the coming days, Chief Economic Adviser to the Government V. Anantha Nageswaran said. The comment holds relevance in the context that the price of gold rose 8% in the last three months when the Indian stock prices fell over 8% during the same period. Register to read
Expectation of further repo rate cuts by the Reserve Bank of India and easing liquidity will improve banks' loan growth, Fitch Ratings said in a report. As part of banks' move to lower loan-to-deposit ratios, credit growth has moderated to 11% on year as of Dec. 31 from 15% a year ago. Pressure on the sector's loan-to-deposit ratios has eased but private banks remain stretched with an average ratio of 98%, Fitch said. Bank of Maharashtra reported loan growth significantly above its peers, while Union Bank of India and Axis Bank showed a single digit growth.Register to read
India's GDP is on the verge of crossing the $4-trillion mark in 2024-25 (Apr-Mar), Chief Economic Adviser to the Government V. Anantha Nageswaran said on Friday. India's nominal GDP is likely to expand to $3.924 trillion by the end of FY25, considering a daily average exchange rate of INR 84.37 per dollar, he said.Register to read