Quick View: RBI sold $3.18 bn in Aug to stem rupee slide

Updated: Oct 11 2013, 08:55am hrs
The Reserve Bank of India pumped in $3.18 billion in the forex market to arrest the slide of the rupee in August, when it fell to an all-time low against the dollar. As per RBIs monthly bulletin released on Thursday, the central bank bought $724 million from the market in August, leading to net sales of $2.46 billion. However, the dollar sales in August were almost half the amount in July, when the central bank pumped in $6.026 billion. In August 2012, RBI had sold $552 million. Rupee had touched a record low of 68.85 against the dollar on August 28 amid concerns about a widening current account deficit (CAD) and fears of capital outflows when the US Federal Reserve starts tapering its stimulus programme.

RBI eases overseas borrowing norms

As part of its previous guidelines on allowing banks to borrow overseas up to 100% of their Tier-I capital, RBI has allowed banks to borrow from international or multi-lateral financial institutions for a limited period up to November 30. Such borrowings should be for the purpose of general banking business and not for capital augmentation, RBI said on website on Thursday. Such borrowings shall be eligible for the concessional swap facility of RBI, the notification said.

Indiabulls Housing cuts lending rates

Indiabulls Housing Finance on Thursday cut home loan rates by 0.15% to 10.25%, following into the footsteps of state-run banks that have slashed lending rates for the festive season. The new rate is applicable on loans under R25 lakh and will remain in force till November 30, the company said in a statement. Indiabulls Housing is the first private lender to slash rates after a majority of the Government banks, including SBI, initiated similar moves on retail products over the last two days. Among mortgage lenders, SBI offers the cheapest loan at 10.15%. IDBI Bank and Punjab National Bank have announced attractive home loan schemes for a limited period to attract customers.