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Business EYE DECEMBER 04, 2020 | The Indian Eye 34

Q3 FIGures shOW sIlVer

lInInG In darK clOuds?

Data for third quarter of 2020-21 confirm that economy is recuperating

faster than anticipated, more sectors joining multi-speed upturn

Our Bureau

New Delhi taKing PositiVe stePs

he Reserve Bank of For groWth
India (RBI) gover-
Tnor Shaktikanta Das • The key lending rate of the RBI or
on Friday said that the In- the repo rate was left unchanged at 4
dian economy was recov- per cent while the reverse repo rate
or the key borrowing rate stayed at
ering faster than expected 3.35 per cent.
from the slump created by • RBI expects GDP to contract by
the Covid-19 pandemic and 7.5 per cent for the current year as
raised gross domestic prod-
uct (GDP) projection for against a contraction of 9.5 per cent
projected in previous MPC meet.
financial year 2021 to (-)7.5 • Core inflation remains sticky; CPI
per cent from (-)9.5 per inflation projected at 6.8 per cent in
cent earlier. Q3 and 5.8 per cent in Q4.
Announcing the deci-
sions taken by the central was to be accommodative in eration, the real GDP for • Limit for contactless card transac-
bank’s monetary policy terms of liquidity until FY21 FY21 is projected at -7.5%. tion to be raised from Rs 2,000 to
committee (MPC), Das said as the signs of recovery are For Q3 at 0.1% and 0.7% Rs 5,000 per transaction from Jan-
uary 2021
the accommodative stance far from being broad-based. for Q4 and 21.9% to 6.5% • The RTGS system will soon be made
of monetary policy will con- All the six members of in H1:2021-22, with risks 24x7 in next few days as announced
tinue as long as necessary, the MPC (monetary policy broadly balanced.,” said in last MPC meet.
to revive growth and miti- committee) voted unani- Das • Marginal standing facility and bank rate
gate impact of Covid-19. mously to keep RBI’s key Equity indices finished
Data for Q3 of 2020-21 lending rate to banks or the higher on Friday with the remains unchanged at 4.25 per cent.
confirm that economy is re- repo rate at 4%. The re- benchmark BSE Sensex • Commercial, cooperative banks to
cuperating faster than an- verse repo rate, or the rate breaching the 45,000-mark retain profit made in 2019-20; not
to make any dividend payment
ticipated, more sectors join- it offers banks for their sur- for first time ever, led by • The central bank will review the
ing multi-speed upturn plus funds, stayed at 3.35%. gains in banking, financial guidelines on credit default swaps
The Reserve Bank of Banks have said that in- and FMCG stocks, after
India (RBI) governor also terest rates will not go down the Reserve Bank of India to facilitate the development of the
announced a status quo on further for borrowers as (RBI) said that the Indian credit derivatives market. It will
soon issue draft directions for pub-
the interest rate, forecast a deposits growth has slowed economy was recovering lic comments in this regard.
lower GDP (gross domes- down and credit growth is faster than expected. • RBI has asked scheduled commer-
tic product) contraction for slowly returning. The gov- After scaling an all-time cial banks and co-operative banks
the second half and sharply ernor did not give any indi- high of 45,128, the 30-share not to make any dividends for the
raised inflation projections. cation that there was space BSE index surged 447 points
The policy is expected for further rate cuts like he or 1 per cent to close at financial year ended March 2020.
to push growth as it sends did in the past. fresh peak of 45,080; while, • In view of the ongoing stress and the
a signal that rates have bot- “Data shows the econ- the broader NSE Nifty set- heightened uncertainty on account
of the pandemic, RBI said it is im-
tomed but funds would be omy is recuperating faster tled 125 points or 0.95 per perative that banks continue to con-
available at current rates than expected. The contrac- cent higher at 13,259. serve capital to support the econo-
for next few quarters. tion in Q2 was shallower On the NSE platform, my and absorb losses, if any.
Markets were cheered than expected. The posi- all sub-indices finished
by the central bank’s deci- tive outlook is clouded by in green with Nifty Bank, • Efforts are underway to ensure a
sion to ignore inflation to a rise in infection in some Private Bank, FMCG and calibrated unlocking of the econ-
nurture growth. Das said parts of the country. Taking Metal gaining as much as omy, with cognizance and caution
about the virus.
that the stance of the policy these factors into consid- 2.05 per cent.

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