BUSINESS
A private sector chief for LIC may not be an easy deal
The key to a change in LIC's fortunes lies not in bringing in outside talent, but in giving its management a completely free hand
BUSINESS
Should the MPC give one more rate hike for the road before resting?
The MPC faces a tough choice between staying the course and pausing a bit to take stock and then making the next move
BUSINESS
India’s small insurers get the wings to grow as IRDA eases rules
IRDA’s relaxations could see competition heating up in the insurance space in the coming years
BUSINESS
Riding the credit boom won’t be easy for PSU banks
Public sector bank shares are in demand, rising by 28 percent in a month. Investors are betting they will ride the anticipated credit boom
BUSINESS
RBI-EU standoff will hit markets, regulators must talk to each other
If the stand-off continues, European banks operating in India would be forced to halt transactions in the domestic markets
BUSINESS
Doves, hawks and the Catch 22 in monetary policy
While the RBI members of the Monetary Policy Committee are all for further tightening, two outside members---Ashima Goyal and JR Varma—believe it’s time to ease up on tightening policy
BUSINESS
RBI takes its first steps on digital currency, but is it really a giant leap for finance?
The RBI has addressed most of the misgivings about the Central bank Digital Currency (CBDC) in its concept note, but it doesn’t make a compelling case why it’s needed
BUSINESS
A financial stability storm could upset RBI’s optimism
The central bank's optimism on domestic growth could get tested by transmission risks posed by global events on the trade and financial market fronts
BUSINESS
RBI will have to consider not just inflation, but also exchange rate and liquidity
Thanks to the RBI’s defence of the rupee, liquidity is now in deficit and short-term rates have inched up so that the effective policy rate hike is more than the actual 140 basis points hike in the repo rate this year
BUSINESS
India’s small firms will remain a thorn in bank balance sheets
Over the years, the government has helped small businesses, but they remain at the mercy of any adverse turn in the economy. The next challenge they will face is elevated input costs and high interest rates
BUSINESS
RBI’s moment of truth on exchange rate is upon it
The over $10 billion drop in the forex reserves in a single month shows that the central bank is doing whatever it takes to reduce the pressure on the rupee
BUSINESS
Let the markets decide the need for bank privatisation
The debate about bank privatisation has at its core the difference between market expectations and social goals
BUSINESS
A strong second step must follow RBI’s first one in digital lending
A new age fintech is unlikely to match the banks’ robust underwriting and risk management capabilities, even though it may have access to plenty of data about the borrower
BUSINESS
As the credit cycle turns up, banks shouldn’t go overboard on lending
Even as small borrowers are more vulnerable to the double whammy of elevated input costs and rising borrowing costs, bank lending to them is at its fastest pace in many years
BUSINESS
Yes Bank’s rebirth needs more than a Carlyle stamp
More than marquee funding, the progress on fixing stressed assets through the asset reconstruction route in partnership with JC Flowers will earn it the trust of the market
BUSINESS
SEBI needs to discipline fintechs in bond market, quickly
SEBI’s consultation paper shows that the regulator is worried about fintech platforms operating in a regulatory vacuum
BUSINESS
As loans lift banks in Q1, treasury desks may weep
Banks held 30 percent of their deposits in sovereign bonds at the end of June, far higher than the regulatory minimum required
BUSINESS
India’s payment glass is half full but also half empty
The RBI, along with the government, has made digital payments cheap for the public. Now they need to make it lucrative for entities in the business of providing payments
BUSINESS
A hawk eye on fintech should start with BNPL
Buy Now Pay Later has been touted as increasing financial inclusiveness, but at a time of rising interest rates, credit at the click of a button and without necessary safeguards, could snowball into a crisis
BUSINESS
Here comes the sun for banks but it may burn some
A three-year high credit growth, lower credit costs and rate hikes that portend an increase in margins have created a sweet spot for banks
BUSINESS
The lesson for RBI from the Dhanlaxmi Bank fiasco
The pace at which the banking regulator has been trying to resolve the problems at Dhanlaxmi Bank leaves much to be desired
BUSINESS
Why the market is unable to read the RBI’s rate hike sizes
If Indians lose confidence in their central bank in reining in inflation, consumption demand would be hit hard
BUSINESS
Winter in markets gives RBI a cold; it could get worse
The buffer against unfriendly markets is low and the contingency fund needs to be beefed up to withstand the impact
BUSINESS
As gold loans lose shine, lenders face growth test
Small businesses, a significant portion of gold loan borrowers, are seeing their balance sheets under pressure again. This could jeopardise their repayment capacity
