The Reserve Bank of India (RBI), perhaps for the first time in many years, has booked dollar/rupee forwards exceeding one-year tenure of up to $3.04 billion during July and August, data from the central bank showed.
India has emerged as the top buyer of US treasury paper with aggregate holdings growing 63% y-o-y as of May-end as RBI seems to have invested the entire increase in foreign exchange reserves into US bonds.
Overseas borrowings of companies excluding those of financial institutions and foreign investors' holdings of onshore rupee bonds rose 40% in FY15 to $25.36 billion and by 79% over the last five years.
Stressed assets of Indian banks could stand at an outstanding Rs 8 lakh crore by the fiscal end and a large part of this would have gone bad given that corporate balance sheets continue to be highly leveraged and profitabilit
The RBI came down heavily on banks for a second time in quick succession, prodding them to cut lending rates and clean up their balance sheets of troubled assets or make requisite provisions. Governor Raghuram Rajan said bank