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Archive: February 8, 2025

RBI Cuts Policy Rate to 6.25%, Maintains Neutral Stance: Satish Chandra Aluri Analyzes Impact

“MPC unanimously voted to reduce policy rate by 25bps to 6.25% from 6.50% – As widely expected. They unanimously decided to continue with “neutral” stance with unambiguous focus on inflation.

They also noted that while growth is recovering, it remains below last year’s level, and inflation trends allow for rate easing, RBI Governor Sanjay Malhotra said in his first policy meeting post his appointment in December.

In our view, the outcome was largely along the expected lines with new governor delivering the first rate cut as widely expected. RBI’s forecasts indicate continued moderation in inflation while growth pick up is expected to be more gradual indicating the emphasis on supporting growth from policy perspective while maintaining the “neutral” stance gives them the flexibility to address potential inflation concerns with an eye towards global developments like trade war.”

Zee Kannada News Achievers Awards 2025 to Honor Visionaries Shaping Karnataka’s Future

Zee Kannada News Achievers Awards 2025 to Honor Visionaries Shaping Karnataka’s FutureBangalore is gearing up for an unforgettable evening of inspiration and recognition as Zee Kannada News presents the Zee Kannada News Achievers Awards 2025 on 8th February 2025. Building on the resounding success of Yuvarathna and Veera Kannadiga, this prestigious on-ground event aims to honor the exceptional individuals, organizations, and groups that have played a pivotal role in Karnataka’s growth and development.

The prestigious Zee Kannada News Achievers Awards 2025 will bring together a distinguished gathering of leaders and luminaries, with Shri Siddaramaiah, Chief Minister of Karnataka, as the Chief Guest, joined by Shri Sadananda Gowda, Former Chief Minister; His Holiness Jagadguru Sri Sri Sri Dr. Nirmalanandanatha Mahaswamiji; Shri D.K. Shivakumar, Deputy Chief Minister; and Shri Ramalinga Reddy, Transport Minister. Enhancing the grandeur of the event, celebrated personalities from the entertainment and social spheres, including Smt. Priyanka Upendra, Shri Dhruva Sarja, Lakshmi Govindaraju, Poornima Ramkumar, Divyashree, Madhumala SN, and singer Bobby, will also be in attendance. This prestigious platform pays tribute to visionaries, game changers, and emerging leaders whose dedication and innovation are shaping Karnataka’s future.

A key highlight of the awards will be the Public Service & Welfare category, which will recognize outstanding contributions across Education, MSME, Women Empowerment, Infrastructure, Health, and Agriculture. By honoring these changemakers, Zee Kannada News seeks to amplify their impact and inspire collective efforts toward Karnataka’s progress. More than just a celebration of achievements, the awards embody a larger vision—nurturing a culture of excellence, encouraging future generations to aspire higher, and fostering meaningful change. As a catalyst for transformation, this platform reaffirms Zee Kannada News’ commitment to uplifting those making a difference and strengthening Karnataka’s growth story.

Zee Kannada News invites business leaders, entrepreneurs, policymakers, and citizens to witness and celebrate Karnataka’s finest achievers.

Zee Media Corporation Ltd, one of India’s leading media companies, has a strong presence in the news and regional genres, with 21 News channels, reaching more than 555+ million viewers in current year through its linear properties.

Sushma Belvedere Achieves RERA Approval, Paving the Way for Luxury Living in Solan Valley

Sushma Belvedere Achieves RERA Approval, Paving the Way for Luxury Living in Solan ValleySushma Belvedere, an architectural marvel inspired by the grandeur of the iconic Belvedere Palace in Vienna, has officially received RERA approval, marking a significant milestone in bringing an unmatched luxury living experience to Solan Valley. This prestigious development by Sushma Group is set to redefine mountain living, seamlessly blending opulence with the serenity of nature.

Nestled amidst the breathtaking landscape of Solan Valley, Sushma Belvedere offers an exquisite retreat from urban chaos. With meticulously designed residences ranging from Suites, 2BRK, 2BHK, to 2BHK+Study, the project caters to those seeking a refined yet tranquil lifestyle.

“The RERA approval for Sushma Belvedere reaffirms our commitment to transparency, quality, and delivering a world-class residential experience,” said Mr. Prateek Mittal from Sushma Group. “This milestone brings us closer to offering homeowners a distinctive blend of elegance and natural splendor, with every detail curated to exude timeless grandeur.”

Designed to embody classic European opulence, Sushma Belvedere is a sanctuary surrounded by lush gardens, tranquil water streams, and scenic bridges. Residents will enjoy unparalleled amenities, including:

• Majestic Themed Gardens inspired by Vienna’s famed landscapes, such as Kakaden Brunnen Garten and Skulpturen Garten.
• Rooftop Clubhouse with panoramic valley views, perfect for stargazing and social gatherings.
• Cultural & Recreational Spaces for musical performances, bonfire nights, and outdoor adventures.
• Wellness Retreats featuring yoga and meditation areas for a holistic lifestyle.

Sushma Group is a leading real estate developer known for crafting luxurious and sustainable communities that blend innovation with nature. With a legacy of delivering excellence, Sushma Group continues to shape the future of premium real estate in India.

The project’s approval under RERA ensures buyers’ confidence in its timely delivery & adherence to superior quality standards. With this significant step, Sushma Belvedere is poised to become the epitome of regal mountain living.

HDFC Bank: 25bps Rate Cut by RBI to Boost Growth, but Liquidity Pressures Persist

HDFC Bank: 25bps Rate Cut by RBI to Boost Growth, but Liquidity Pressures Persist

by Sakshi Gupta Principal Economist HDFC Bank

In the inflation-growth trade-off the RBI tilted towards supporting growth by cutting the policy rate by 25bps today. This decision was underpinned by the governor’s emphasis on the “flexibility” in the inflation target framework, a deviation from the previous assertion of reaching the median target of 4% by the central bank.

While the policy rate was reduced, the MPC kept the stance unchanged at neutral. This could imply a more cautious approach towards the extent of rate cuts going forward in this rate cutting cycle.

The stance also suggests that while the central bank is likely to provide sufficient liquidity – both transient and durable — to the system, it has abstained from providing a liquidity bonanza. Therefore, lingering pressures on liquidity could weigh on the transmission process for now.

The pressure on liquidity conditions is anticipated to linger on as we move into the end of the month and year-end drags including advance tax outflows weigh in. We expect this to be met by appropriate liquidity infusion measures including further OMOs, buy/sell swaps, and longer duration repos.

The RBI showed confidence in the disinflation process, pegging the inflation rate to average at 4.2% in FY26 while growth is projected to be at 6.7% — which is towards the higher end of the range set out in the economic survey of 6.3-6.8% for FY26.

The governor set out a more balanced approach towards regulations which would strike a balance between the associated benefits and costs. However, it fell short of providing any clarity on the implementation of the new LCR norms.

We expect the RBI to frontload its rate cuts and deliver another rate cut in the April policy of 25bps. The space for rate cuts beyond this would hinge on how domestic and global headwinds pan out.

Arka Sarkar Shares Expert Insights on RBI MPC Meeting 2025

Arka Sarkar Shares Expert Insights on RBI MPC Meeting 2025

quote by Arka Sarkar, VP – Marketing and Sales at Pilani realty.

The MPC’s decision to lower the policy rate by 25 basis points is a welcome move for the real estate sector. This anticipated rate cut, the first in nearly five years, will provide substantial relief to home buyers. Lower interest rates translate to cheaper home loans and more affordable housing, directly benefiting both prospective and existing buyers. Reduced EMIs increase savings and purchasing power, making homeownership more attainable. Coupled with moderating food inflation and positive Rabi crop projections, this rate cut is expected to stimulate activity in the housing market.

RBI MPC Meeting 2025: Expert Quotes on Policy Decisions and Market Impact

quote by Mr. Amit Goenka, MD and CEO at Nisus Finance.

The rate cut was much awaited as India has been experiencing a slowdown in the economy. This rate cut will lead to lower EMIs for home buyers and strengthen the demand for housing.

quote by Mr. Ravi Ramesh Pilani, MD at Pilani Group

We are pleased that the MPC has decided to unanimously reduce the policy rate by 25 basis points from 6.5% to 6.25%. The market had anticipated that the RBI would cut the REPO rate in this monetary policy. This marks the first rate cut in nearly five years, following a prolonged rate hike cycle triggered by global events. With food inflation moderating and positive Rabi crop forecasts, experts assert that a rate cut could offer significant relief to home buyers.

quote by Dr. Mohit Ramsinghani, CXO, Real Estate Industry.

The RBI’s decision to cut the repo rate is a welcome move for the real estate sector. The RBI last reduced repo rate 5 years back in May 2020. Lower interest rates will make home loans more affordable, which will boost demand for housing. This is a positive development for both homebuyers and developers. The lower interest rates will also make it easier for developers to finance new projects, which will lead to an increase in the supply of housing. The RBI’s decision is a sign that the central bank is confident that inflation is under control and that the economy is on a path to recovery.

quote by Priyank Mehta, Co-Founder and Director at M. space Realty.

The Monetary Policy Committee’s (MPC) unanimous decision to lower the policy rate by 25 basis points, from 6.5% to 6.25%, is a positive step. This reduction, anticipated by the market, marks the first such decrease in nearly five years, following a prolonged cycle of rate hikes driven by global economic factors. The timing is opportune, coinciding with moderating food inflation and promising Rabi crop forecasts. This rate cut is expected to provide substantial relief to borrowers, particularly home buyers. Lower policy rates typically translate to reduced borrowing costs, making home loans more affordable. This can stimulate demand in the housing market, potentially leading to increased sales and construction activity. For prospective home buyers, this could mean lower EMIs and improved affordability, making homeownership a more attainable goal. It also signals a potential easing of financial conditions, which could boost overall economic growth.

quote by Shankesh Sanghvi, Director of Sanghvi Realty.

We welcome the MPC’s unanimous decision to lower the policy rate by 25 basis points, from 6.5% to 6.25%. This move was anticipated by the market, which expected an RBI repo rate cut in this policy announcement. It’s the first such reduction in nearly five years, following an extended period of rate hikes driven by global events. Given moderating food inflation and positive Rabi crop projections, experts believe this rate cut will provide substantial relief to home buyers, especially considering the current high home loan interest rates. Ultimately, this makes homeownership more attainable and stimulates activity in the housing market.

Lower interest rates are likely to directly translate into cheaper loans and more affordable homes. This announcement will directly benefit prospective and existing home buyers, as EMIs are expected to decrease, increasing their savings and purchasing power.

Mr. Tarun Singh Shares Key Insights on RBI MPC’s Rate Cut Decision

Quote:

In a decisive move, the RBI MPC cut the repo rate by 25 bps to 6.25%, citing easing inflation and slowing growth, while maintaining a ‘neutral’ stance to navigate global uncertainties and evolving trade dynamics. With inflation projected at 4.2% for FY26 and growth at 6.7%, the RBI aims to balance real interest rates around 150 bps, potentially paving the way for further cuts to a terminal rate of 5.75%. The central bank’s proactive liquidity measures, including repo auctions and OMO purchases, are expected to ensure smoother transmission of rate cuts, supporting growth amid external challenges. My critical reading of this is that while the rate cut is a welcome step to stimulate growth, the RBI’s cautious ‘neutral’ stance and reliance on inflation projections may limit the scope for aggressive monetary easing. The MPC’s decision to remain watchful of global financial market volatility, geopolitical tensions, and adverse weather events underscores the fragility of the current recovery. However, the RBI’s emphasis on maintaining a durable alignment of inflation with the 4% target, while supporting growth, appears overly conservative given the tepid industrial growth and persistent drag from external headwinds. The projected GDP growth of 6.7% for FY26, though optimistic, hinges on favourable rabi prospects and a recovery in private consumption, which may be undermined by global trade uncertainties and commodity price volatility. Thus, the RBI’s approach, while prudent, risks being reactive rather than proactive in addressing the structural slowdown in growth.”

Indian Life Insurers Achieve Record Growth in January 2025; Premiums Surge 7.78%

Mumbai, 8th February 2025: The Life Insurance Council has released updated industry business numbers for January 2025, revealing positive trends in key areas. New business premiums (NBPs) underwritten by Indian life insurers have achieved a YTD growth of 7.78% compared to the same period last year. YTD collections grew from ₹283833.52 Crs to ₹305912.09 Crs this year. The life insurance industry saw individual single premiums growing by 16.26% on a Y-o-Y basis, closing at ₹4127.67 Crs for Jan’25, with YTD growth at 14%. Individual non-single premiums reached ₹10632.32 Crs, growing by 10.52% in Jan’25, and YTD collections settled at 14% higher than the corresponding period last year.

This strong performance can be ascribed to the fact that life insurers are increasingly focusing on encouraging first-time life insurance buyers to buy essential life insurance solutions, contributing to the 12.07% growth in combined individual premium collections for the month of Jan’25 and 14% growth on a YTD basis.

The life insurance industry in India has been making significant strides forward by expanding access to insurance and making an effort to reach out to areas and segments of the country’s population that were previously underserved when it comes to their insurance needs. Towards this end, life insurers added more than 872055 individual life insurance agents, with an overall 4.82% growth in cumulative agent count. Still, the sustained pace of agent addition is being complimented by the high speed of digitisation by life insurers, paving the way for additional gains in insurance penetration that should provide a significant boost to new business premiums in FY25 and beyond.

ICC DG Dr. Rajeev Singh Weighs In on RBI’s Repo Rate Cut

In regards to the statement issued by RBI on reducing in the repo rate, Dr. Rajeev Singh, Director General, Indian Chamber of Commerce (ICC) said, “The Reserve Bank of India (RBI) has reduced its key repo rate for the first time in nearly five years by 25 bps from 6.5% to 6.25%. When this rate cut is coupled with the Income Tax Cuts in the Union Budget we feel that the Indian Economy would get both Fiscal and Monetary Boost to move on to a higher growth path. This is an ideal measure with inflation nearing the desired level of 4%.”