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
BUSINESS
Indian banks’ bumper profits don’t show economic scars
The aggregate net profit of 27 listed commercial banks has shown an 86 percent year-on-year jump in the March quarter
BUSINESS
Indian economy has got long COVID, and a 12-year struggle awaits
On a cumulative basis, the economy has to make up for a staggering Rs 52.6 lakh crore of output lost
BUSINESS
Credit cards a good carrot for NBFCs amid tightening regulation
The change will mean that NBFCs can now earn interest income on their credit cards as the credit would be from their own balance sheet
BUSINESS
India’s balance of payments is getting into rough waters
The forex reserve heap is down $38 billion from its record high. Of this, a fall of $28 billion has come in the last five weeks
BUSINESS
Between digital assault and regulation, NBFCs have it tough
As regulatory arbitrage comes to an end thanks to the central bank and as nimble fintech companies nip at their heels, NBFCs will have to reinvent themselves
BUSINESS
As inflation tests RBI, managing expectations may get painful
The RBI governor has taken a soft tone on inflation because he believes it is due to supply-side factors. But they could lead to higher inflationary expectations
BUSINESS
SBI is ready for investor love with a scrubbed-up book
Analysts believe the lender’s return on equity ratio is set for consistent improvement, as it earns more out of its loan portfolio by clearing away the debris of toxic loans and getting better borrowers incrementally
BUSINESS
IndusInd Bank has a few bumps ahead before a smooth ride
The lender has several holes to plug, starting with its microfinance vertical
BUSINESS
With digital woes behind it, HDFC Bank now needs a friendlier world
Analysts have kept the faith and most still highlight HDFC Bank's comparatively pristine asset quality as a key strong point
