Bonds gain
G-Secs - up by around 23 paise to 35 paise across maturities. The 7.46 per cent 2014 paper opened at Rs 119.35 and got dealt up to Rs 119.60. The 8.07 per cent 2017 opened at Rs 124.45 and got dealt to Rs 124.68.
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Annual Policy Statement is the new name
Mumbai: The central bank has said that Dr Y.V. Reddy, Governor, Reserve Bank of India, would announce the Annual Policy Statement for the year 2004-05 on May 18. The credit policy itself will hereafter be known as 'RBI's annual policy statement' and not as the monetary and credit policy.
The RBI's rationale for renaming the policy is that measures announced over the past few years were related to credit and financial sector reforms per se, and accordingly appropriate changes have also been made to the nomenclature.
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SIDBI reduces lending rate for SMEs
New Delhi: The Small Industries Development Bank of India (SIDBI) has sought the permission of the Reserve Bank of India (RBI) to offer working capital assistance to companies in the small-scale sector. SIDBI has decided to reduce the lending rate to the SME (small and medium enterprises) sector to 9.5 per cent, which was two percentage points lower than the bank's prime lending rate of 11.5 per cent.SIDBI was also waiting for clearance of the definition of medium scale industry from the Ministry of Small Scale Industries to provide finance to the sector.Currently, there is no definition of a medium scale sector industry. The SIDBI board has approved a proposal for terming an industry having an investment of up to Rs 10 crore in plant and machinery as being in the medium scale sector. The Ministry of Finance has cleared the proposal.
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