Economy news

Inflation effect : RBI hikes CRR by 50 basic points.

The Reserve Bank on Thursday hiked Cash Reserve Ratio, the amount of depositors' money that banks need to park with it, by half a per cent to tighten money supply, as part of concerted efforts with the government to ease inflation. The hike, which would take CRR to 8 per cent, will come into effect in two tranches of 0.25 per cent on April 26 and May 10. The measure would suck out liquidity to the tune of Rs 18,500 crore from the banking system and would leave banks with less money to lend and in turn would help cool inflation.
CRR effects : Home loans rates likely to increase
THursdays announcement by RBI of a hike in CRR is likely to effect retail loans as more of funds would be sucked out of the system and banks may need to hike rates to maintain their margins. Although most banks are likely to wait for the 29th of april before increasing the PLR but retail loans may be effected soon.
MMTC profits more than doubles
MMTC Ltd on Thursday announced a standalone net profit of Rs 90.62 crore for the quarter ended March 31, about 2.32 fold increase over the corresponding period a year ago. The company had a stand-alone net profit of Rs 38.90 crore for the corresponding quarter last year, the company said in a filing to the Bombay Stock Exchange. The standalone total income increased to Rs 9,421.60 crore for the quarter under review, from Rs 4,889.57 crore in the year-ago period. For the year ended March 31, the company posted a net profit of Rs 206.15 crore, compared to Rs 126.80 crore in the previous year. Total Income has increased to Rs 26,313.57 crore for the year from Rs 23,347.31 crore in the previous year. Shares of the company closed at Rs 29,377.60, up 4.21 per cent at the BSE.
Saffron buys 30% in Parsvnaths mumbai project
Saffron Group, which manages real estate investment funds, has picked up a 30 per cent stake in a Mumbai realty project of Parsvnath Developers for Rs 186 crore. The investment has been made through two of its funds - Yatra Capital and Saffron Real Estate Fund I (SIREF I).
Jarul Promoters & Developers, a special purpose vehicle (SPV) of Parsvnath, is developing the BEST bus depot near Bandra Kurla Complex, Mumbai's new business district. The investment by Saffron's funds have valued the project at Rs 620 crore.
Parsvnath bought the depot land, measuring 30, 820 square metres, in an open tender for Rs 42 crore. The project involves planning, designing, constructing and re-modeling a fully-equipped bus depot, staff housing and commercial offices