Page 8 - BFSI CHRONICLE 3092022.indd

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B FSI C hr o n ic l le , 11 th th Edition S ep te mber202 2
BFSI Chronicle, 11 Edition September2022
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From the Desk of the Department
Festive Greetings from team BFSI to all our to help creditors get better value for distressed
esteemed readers! assets which may lift recovery rates northwards.
The thirty seventh meeting of the Monetary Policy The government’s Capex during April – August
Committee (MPC), constituted under section period showed an increase of 35 per cent compared
45ZB of the Reserve Bank of India Act, 1934, was to a year earlier and it is perceived that the increased
held during August 3 to 5, 2022 and decided to spending in Capex is likely to be sustained with a
Increase the policy repo rate under the liquidity steady revenue growth for the remaining period of
adjustment facility (LAF) by 50 basis points to 5.40 the current year.
per cent. Consequently, the standing deposit facility
(SDF) rate stands adjusted to 5.15 per cent and the Bidding to be competitive globally the ‘New
marginal standing facility (MSF) rate and the Bank National Logistics Policy’ aims to cut costs as a need
Rate to 5.65 per cent. The MPC also decided to is felt to contain transportation costs to a single digit
remain focused on withdrawal of accommodation from the present 13 to 14 per cent.
to ensure that inflation remains within the target
going forward, while supporting growth. These With favourable monsoon in many parts of the
decisions are in consonance with the objective of country and an overall optimistic consumer
achieving the medium term target for consumer sentiment many sectors are expecting to cash in on
price index (CPI) inflation of 4 per cent within a the festive sales.
band of +/- 2 per cent, while supporting growth.
The Russia-Ukraine war continues to rage on in the
As banks rushed to offer better deposit rates to backdrop of world politics.
attract the retail customers the repo rate increase
may hit the industry and MSMEs borrowing costs, While telecom majors are set to roll out 5G and RBI
however, what is of paramount importance is to seeks to address digital payments with tokenization
control inflationary expectations in the economy. with a no-card storage environment, we expect the
Mid-September data has shown a rise in inflation digital revolution to continue its reach to the masses.
in August to 7 per cent from around 6.7 per cent However, we feel that our readers should update
of the previous month. However, according to the their knowledge on cybersecurity and mitigate
Finance Ministry inflationary pressures appear to these techno risks in this information age we may
move southwards and the country focuses on a consider a course on the matter for our members
strong external account. We will keenly follow the and students. We request for your feedback on the
trends and impact of these changes in the business same.
environment and will continue to update our
readers through our publications and daily updates. As always, we shall continue to track the market
indicators and developments in the economy and
On the Insolvency and Bankruptcy Code front, appraise our readers through our updates, webinars
the market movers and shakers feel that multiple and other publications.
amendments and clarifications to the IBC by the
Insolvency and Bankruptcy Board of India is likely Stay safe and happy reading!

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The Institute Of Cost Accountants Of India
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The Institute Of Cost Accounntants Of India
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