Economy News


Date Heading Details
20-Oct-2021   12:44 Hrs IST Moody's Investors Service raises outlook for Indian banking system to ‘stable' from ‘negative' <p align="justify">Citing moderate deterioration of asset quality since the onset of the pandemic and likely pick-up in credit growth with economic recovery, credit rating agency Moody's Investors Service in its latest report has raised the outlook for the Indian banking system to ‘stable' from ‘negative'.</p><p align="justify">According to the report, the quality of corporate loans has improved, indicating that banks have recognized and provisioned for all legacy problem loans in this segment. The quality of retail loans has deteriorated, but to a limited degree because large-scale job losses have not occurred.<br></p><p align="justify">Besides, the rating agency assumes that the government will provide a very high level of support for rated public sector banks, given their strong links to the government. On the economic growth front, Moody's expects India's economy to continue to recover in the next 12-18 months, with GDP growing 9.3 per cent in the fiscal year ending March 2022 and 7.9 per cent in the following year.<br></p>
20-Oct-2021   12:00 Hrs IST Steel prices set to go up further due to rising raw material prices in China: Crisil <p align="justify">Rating agency Crisil in its latest report has said that steel prices are set to go up further due to rising raw material prices in China and the expected coal or power shortage that will potentially weigh on the earlier-anticipated price correction. It noted that after a brief cooling down in July-September, domestic steel prices began to rise again in October, with major steelmakers increasing the price of flat steel by Rs 1,500-3,000 per tonne. Long steel prices also rose Rs 3,000 per tonne in the first week of October, led by higher coal prices and healthy demand.<br></p><p align="justify">According to the report, despite this material increase, domestic flat steel is priced at Rs 10,000-12,000 per tonne, lower than global landed prices. China's hot-rolled coil was around $980 per tonne in September, which kept domestic prices up. That means domestic prices are 13-15 per cent lower than global landed prices. All this can be stated differently as having room to raise domestic prices further, and a correction this quarter appears unlikely as prices are likely to hold.&nbsp; <br></p><p align="justify">The agency expects prices to retain their upward bias through this quarter. While the January-September 2021 period saw the cost rising, led by the iron ore rally, the October-December season is likely to see higher cost inflation, led by coking coal and thermal coal, along with other inputs such as ferroalloys, whose prices have surged since September. <br></p>
20-Oct-2021   10:26 Hrs IST Govt looking at rolling out 5-year strategic plan to make India significant tech player: Rajeev Chandrasekhar
20-Oct-2021   10:04 Hrs IST Gross NPAs of banks may rise to 8-9% in FY22: Crisil
20-Oct-2021   09:00 Hrs IST India's services exports likely to reach over $240 billion during 2021-22: SEPC
19-Oct-2021   12:36 Hrs IST Indian economy picking up steam: Reserve Bank of India
19-Oct-2021   11:41 Hrs IST Continued coordinated policy response to combat COVID-19 is critical to overcome health crisis: IMF
19-Oct-2021   10:22 Hrs IST Around 70.66 lakh domestic passengers travelled by air in month of September: DGCA
19-Oct-2021   10:03 Hrs IST Private industrial capex appears to be getting into whole new cycle after pandemic hiccup: Crisil
19-Oct-2021   09:00 Hrs IST Centre infuses Rs 1,31,000 crore to boost agriculture and allied sectors: Shobha Karandlaje