CRR is a monetary policy signal
The cash reserve ratio (CRR) is not just a liquidity tool but a monetary policy signal, a deputy governor of the Indian central bank said on Wednesday, amid market speculation it may lower the ratio in order to ease tight liquidity it the banking system. “Whether using an instrument that i part of monetary toolkit to address liquidity issue is certainly a debate which we have to engage in,“ Subir Gokarn told bankers. CRR is the proportion of depost its that banks need to set aside with the central bank as cash. The ratio now stands at 6%.
Biyani to divest non-core businesses
Even as the government suspended its move to allow foreign direct investment (FDI) in retail, Kishore Biyani, chairman, Future Group, said he was planning to divest non-core businesses and assets. The Future Group has businesses across financial services, grouped under Future Capital Holdings Ltd, and retail, housed in Pantaloon Retail India Ltd. “We have earmarked enough assets and whatever is non-core, we would look at divesting,“ said Biyani, adding that the group would look at disinvestment rather than raising debt to grow.
The shares of both group firms surged on BSE Ltd on Wednesday after a report by “The Economic Times" about the sale of Future Capital to Deccan Chronicle. Biyani declined to comment on the report. In a filing to BSE, Pantaloon Retail stated that it “denies any such transaction at this stage.
(Source- mintlive.com)
