BUSINESS
What is behind banks’ weakening core income growth?
Analysts believe that the pressure to raise deposits would continue and that would mean banks have to cough up more interest to get depositors. Also, much of the repricing of the loan book in terms of interest rate hikes is over. The upshot is that drag on NII growth would continue.
BUSINESS
Moneycontrol Pro Panorama | Keeping finance clean
In today's edition of Moneycontrol Pro Panorama: Indian stock markets succumb to US data, creation of quality jobs must be incentivised, bank woes could be short-lived, sharp drop in crypto trading in Indian exchanges, and more
BUSINESS
Bandhan Bank’s investors deserve a neat, clean book
What doesn’t help Bandhan Bank’s cause is its own asset quality track record. For the past two quarters, the lender has disappointed investors with the quality of its loans as slippages have increased leading to an impact on its bottom line
BUSINESS
RBI’s Goldilocks forecast for FY25 depends on liquid courage it refuses to give
The RBI needs to soften its liquidity stance if it wants the forecasts for the next fiscal year to come true. After all, GDP growth is driven by investments more than consumption at this point
BUSINESS
SBI needs staff to roll up its sleeves to lift shareholder returns
SBI’s willingness to dole out pensions at enviable rates is a good strategy to attract future talent, but it pinches if the wage bill is added. The only way to not hurt profit is to generate more income per employee
BUSINESS
Lessons to learn from the Paytm debacle
Paytm’s debacle shows that fintechs cannot function like the Wild West anymore and claim to be above rules. Even so, there are some lessons for the regulator too here.
BUSINESS
Cheered by Budget, bond market now needs friendly RBI policy
A lower deficit automatically translates into a lower supply of bonds from the government. Indeed, the gross borrowing of the government is pegged at Rs 14.13 lakh crore, lower than Rs 15.43 lakh crore for FY24.
BUSINESS
Banks' profits get a strong leg-up from India Budget
India’s banks are the biggest investors in the government’s bond issuance every year and they hold a little over 37 percent of outstanding government bonds
BUSINESS
Mahindra Finance gets growth right, but costs bite
What stood out as a sore thumb was the 18 percent contraction in tractor loans and 47 percent fall in loans to small businesses. While the fall in small business loans is perhaps partly by design, a sharp contraction in tractor loans does not augur well for the company
BUSINESS
MC Pro Quick Take | Bajaj Finance is resilient but growing borrower leverage needs a look
The growth in new loan acquisitions has always outstripped that of new customer acquisitions, implying that a large chunk of new loans is given to existing borrowers. In the October-December quarter, 61 percent of the new loans went to existing customers
BUSINESS
MC Pro Quick Take | SBI Life fares better than peers, but not compared to its past performance
SBI Life’s stock has lagged the broad market and a key reason behind this is the expectation that business growth rates this year won’t match that of the last one. The indications are already visible
BUSINESS
Axis Bank’s balance sheet growth is not powering its profits yet
Even as the heat on deposits is on, Axis Bank is aiming to expand its branches, just like its peers to keep up the fight to garner deposits. This and spending on tech, along with general employee expenses, has been a big drag on profits
BUSINESS
IDFC First Bank’s 5-year plan needs an opex fix
IDFC First Bank wants to expand its branches to bring in more deposits, a strategy adopted by almost every bank. But keeping operating expenses under control could be a challenge.
BUSINESS
ICICI Bank’s Q3 could reinstate investor faith in bank stocks
ICICI Bank’s net interest margin for the quarter stood at 4.43 percent, far superior to HDFC Bank’s 3.43 percent. The management has guided that margins for FY24 will remain similar to the previous financial year
BUSINESS
Moneycontrol Pro Panorama | Davos diaries and the Indian leap of faith
In today's edition of Moneycontrol Pro Panorama: Indians making investment changes as per tax resets, geopolitical risks will drive up oil prices, travel insurance to the rescue, sugar mills face another hit, and more
BUSINESS
HDFC Bank’s profitability fails the return on assets test
Two metrics have emerged as a big red flag for investors: A 2 percent contraction in earnings per share and a greater contribution of tax writebacks behind the enviable 2 percent return on assets (RoA).
BUSINESS
Moneycontrol Pro Panorama | Spotted: Goldilocks buying bonds
In this edition of Moneycontrol Pro Panorama: India’s tax up to GDP ratio, VIX is not a great indicator for a traders, has Taiwan abated war risk post election, Bangladesh's cat-and-mouse game with India, and more
BUSINESS
Can India’s bonds best their 2023 show?
A surprise on the supply of bonds in FY25 is unlikely as the government has assured fiscal prudence. The anticipated demand from foreign investors, though, is tricky and would need some deft moves.
BUSINESS
Moneycontrol Pro Panorama | Budgeting for healthy banks
In this edition of Moneycontrol Pro Panorama: Investors await Q3 earnings, time for a second green revolution, don’t buy the multi-asset funds story blindly, Ram Mandirand the electoral gain for BJP and more
BUSINESS
Budget Snapshot: Healthy banks make for a wealthy government
The government is confident that its banks can run and grow on their own without help from it for funds. In fact, several public sector lenders have tapped the bond market and have plans to explore equity issue to raise money to grow.
BUSINESS
Budget 2024: It's time life insurers were weaned away completely from tax crutches
Tax changes announced in last year’s budget have hurt life insurers but the industry has bounced back. In fact, business growth has been better in recent months with a push for non-participatory products.
BUSINESS
Deposits, margins to keep banks busy in 2024
The banking industry had high and low points in 2023 but investors would have made more money buying the NIfty than the bank index. While hopes are pinned on a better 2024, banks have a lot of issues they need to fix
BUSINESS
Moneycontrol Pro Panorama | You have the option to lose money…or not!
in this edition of Moneycontrol Pro Panorama: Pakistan using Kashmir as smokescreen, startup investors need more principles, 'Aatmanirbhar India' needs a Chinese makeover, Aadhaar has turned a nightmare for the poor, and more
BUSINESS
Wide state bond yield spread benefits investors but won’t hurt states much
The interest payment and debt servicing expenditure has been 12 percent of states’ total revenue spends in FY23, marginally down from 13 percent in FY22.
