Wage Settlement talks dtd 03.02.2015

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During the wage settlement talks held between UFBU and IBA today, IBA improved the offer by 0.5% to 13%. This was not accepted by UFBU which had come down from 30 % to 19%. Hence they revived their strike programme which will be observed from 25th February 2015 to 28th February 2015 continued by Indefnite strike from 16th March 2015.

RBI disappoints

6th Bi-monthly monetary policy dtd 3rd February 2015

RBI Governer Mr. Raghuram Rajan disappointed market by not reducing the Bank Rate which was expected at 25 basis points. In the Sixth Bi-monthly monetary policy statement for 2014-15 announced today RBI

• kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75 per cent;
• kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);
• reduced the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.0 per cent to 21.5 per cent of their NDTL with effect from the fortnight beginning February 7, 2015;
• replaced the export credit refinance (ECR) facility with the provision of system level liquidity with effect from February 7, 2015;
• continued to provide liquidity under overnight repos of 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and
• continue with daily variable rate term repo and reverse repo auctions to smooth liquidity.

Consequently, the reverse repo rate under the LAF will remain unchanged at 6.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.75 per cent.