BUSINESS
As RBI forces bigwig issuers to rein in credit cards, lenders turn wary of plastic
Growth in credit card issuance and spends have moderated, but Indians remain big spenders
BUSINESS
Is Ujjivan SFB’s hope of a universal bank licence enough to comfort investors?
Rise in stress has prompted the lender to reduce its expectations on growth this fiscal year
BUSINESS
Will bond yields in India be lower for longer?
Rate cuts on the horizon, a likely friendly budget and finally the expected money flow from foreign investors is keeping the bond party alive
BUSINESS
Small loans and the big question on consumption
The average ticket size of micro loans has increased by 12 percent in FY24 and more than 12 percent of borrowers have taken a loan from four or more lenders.
BUSINESS
May springs a surprise for life insurers with volume growth
A seasonally light month of May brought a notable growth in the number of policies sold for life insurers.
BUSINESS
Why a hawkish RBI will prevail over a dovish MPC
Key personnel changes in the MPC over the next year make policy rate cut bets tricky
BUSINESS
What the new government must do to make public sector banks world-class
The Indian banking system is in a good place and this is the best time for the government to fix niggling issues
BUSINESS
RBI’s crackdown on Edelweiss ARC reveals a worrying governance landscape
India’s ARCs have an abysmal track record when it comes to recoveries and many are struggling to stay afloat. The RBI’s concern is serious governance lapses, something that it has warned in the case of Edelweiss ARC.
BUSINESS
Eight years on, recoveries through insolvency code remain disappointing
The IBC process is considerably slowed due to litigating promoters, dissenting creditors, and poor infrastructure. Unless these issues are fixed, it is unlikely that recoveries from the insolvency process would improve.
BUSINESS
Will LIC, the insurance whale, turn into the shark its investors want?
LIC has been losing market share hand over fist and this hasn’t stopped. But its valuation has perked up in recent months, as the insurance whale has given indications that it is serious about grabbing market share.
BUSINESS
The different shades of consumer confidence in India
The South is more confident over economic conditions, even during tough times while the northern states exhibit more pessimism than the national average in consumer confidence. But when it comes to hope, the North wins
BUSINESS
RBI just fattened the government's purse, but got itself a problem
The windfall dividend to the government could become a headache for the RBI.
BUSINESS
Bandhan Bank: All we want for valuations is a CEO in the corner office
While asset quality issues continue to be a thorn, its superior deposit growth has helped Bandhan Bank. Even so, a new CEO is all what investors want, and quickly
BUSINESS
A slowing affordable housing market is finding new money
Affordable housing market’s share in total housing loans has shrunk over the years and financiers to this segment have seen tepid growth in assets under management. That said, non-housing loans have been a big growth driver for them
BUSINESS
SBI’s Q4 reflects India’s economic buoyancy, gives hope for more
SBI’s biggest strength during the fourth quarter was its firm lid on operating expenses. Operating expenses rose by just 1.83 percent year-on-year against double digit increases reported by comparable large peers
BUSINESS
Canara Bank has its intent in the right place, but not numbers
Canara Bank has given a conservative guidance for FY25 where it expects loan and deposit growth to be lower than FY24 and net interest margins to contract.
BUSINESS
In the margin game, public banks are between a rock and a hard place
The compulsion to increase market share and attract more deposits has meant that public sector banks have seen a bigger erosion in net interest margins. The increase in risk weights on select loans has also hurt these banks
BUSINESS
RBI’s draft norms remind banks of building an umbrella for credit risk
For the RBI, the lessons from the punishing bad loan cycle triggered by infrastructure loans are the reason behind the tighter norms
BUSINESS
Kotak Mahindra Bank’s Kashyap warns of irrational pricing in SME loans
Loan mispricing is continuing in corporate lending, especially in the SME space now, says Paritosh Kashyap. Even though Kotak Mahindra Bank wants to disproportionately grow its SME book, but it wants to wade carefully here.
BUSINESS
ICICI Bank is winning with a lot of luck, a little bit of grit
ICICI Bank wins in two key metrics, beating its peers. Its deposit growth is superior and its operating expenses are not out of control as is seen with other lenders
BUSINESS
The questions raised by RBI's restrictions on Kotak Mahindra Bank
Business restrictions globally are used in extreme cases of malfeasance, fraud or questionable conduct of the entity. The RBI’s actions on Kotak Mahindra Bank may seem harsh in light of global practices.
BUSINESS
RBI’s State of the Economy makes a dash for long-term high growth
The RBI’s Bulletin highlights that India must grow 8-10 percent per annum over the next decade to reap benefits from its demographic dividend arising out of a young population
BUSINESS
The dollar is back! Should the rupee brace for more record lows?
Investors believe that the RBI would manage the Indian rupee’s depreciation and record lows have begun to matter less as they seem to be by design and not by surprise.
BUSINESS
Global policymakers must heed IMF’s warnings on private credit
The linkage between private credit and traditional institutions such as banks, pension funds, sovereign wealth funds and others make it imperative for regulators to keep a close eye on deals.
