BUSINESS
Liquidity frictions need a simple extinguisher from the RBI
The variable repo rate auction is a simple tool that the RBI can use to douse the fire in short-term rates now before it begins to cause damage to productive credit deployment.
BUSINESS
Beyond the dirty dozen, insolvency code resembles a scrap yard
While any new law is strengthened by arbitrations, having an abysmal track record on the speed of resolution even after seven years should not be taken lightly.
BUSINESS
Moneycontrol Pro Panorama | Inflation is easing, or is it?
In today’s edition of Moneycontrol Pro Panorama: Public sector banks end up on losing side, rise in rural consumption benefits consumer stocks, CA and CS now under PMLA ambit, business models need to be reviewed over time, and more
BUSINESS
The treacherous world of corporate loan pricing
Banks say the current wholesale loan rates do not fully reflect the risks involved and are hesitant on such loans due to potential mispricing.
BUSINESS
Expected credit loss provisioning could disrupt the PSU bank exuberance
Under ECL, banks will require to gauge the credit risk of the borrower and make anticipatory provisioning before a default has occurred unlike the current regime where banks provide once default has occurred.
BUSINESS
MC Exclusive: Canara Bank betting on retail & rural loan growth, says MD Raju
Although deposit growth was much lower than that of loans in FY23, Canara Bank does not need to raise capital for the next two years
BUSINESS
The Green Pivot: Indian banks aren’t doing enough green financing, quite the opposite
Bank credit to green industries has been growing faster than loan off take to traditional sectors in recent times. But lenders are far from being big financiers of green projects
BUSINESS
Chart of the Day: A dark decade for industrial credit
Part of this sharp deceleration was due to de-leveraging by corporates after undergoing massive stress on their balance sheets
BUSINESS
Mahindra Finance has fortified its book, but not enough for re-rating yet
The company’s biggest drawback has been its rather volatile track record on profitability. Delinquencies have been lumpy and so have provisions. But all that may be about to change
BUSINESS
Go First’s bankruptcy brings back questions about Indian banks’ lending acumen
At least four Indian banks now stand to lose interest income from their loans to Go First that owes a total of Rs 6521 crore to them. Bankruptcy proceedings would put a moratorium on loan repayments
BUSINESS
Uday Kotak’s curious mix of conservativeness and audacity
Kotak Mahindra Bank has been nibbling on unsecured loans since FY22 and now has taken big bites in this segment. It aims to increase the share of such loans from the current 10 percent to the mid-teens.
BUSINESS
Moneycontrol Pro Panorama | The irresistible world of credit cards
In today’s edition of Moneycontrol Pro Panorama: Investors may fall prey to NFOs, Karnataka could be staring at a hung Assembly, Nifty's complacency does not bode well, HUL's dipping price-led growth concerning, and more
BUSINESS
Life insurance stocks record renewed interest as investors shrug off growth concerns
Shares of the largest life insurer LIC have risen nearly 1 percent. ICICI Prudential Life Insurance Company's stock has gained nearly 2 percent, while Max Financial Services Ltd has gained roughly 1 percent. HDFC Life Insurance and SBI Life Insurance have gained more than 3 percent
BUSINESS
Is Bajaj Finance a prisoner of its own success?
Bajaj Finance’s ambition is to reach the 100 million customers mark. Will it succeed in a changing financial landscape rife with competition is the key question
BUSINESS
Why branch banking is making a comeback
Analysts at Elara Capital point out in their April 20 report that branches are critical to boosting a bank’s digital aspirations
BUSINESS
Moneycontrol Pro Panorama: Searching for a pivot amid a heat wave of inflation
In today’s edition of Moneycontrol Pro Panorama: Global uncertainty catches up with Indian markets, US drug shortages rekindle pharma recovery, India-US bond extends beyond politics, tough times ahead for Go First airlines, and more
BUSINESS
India’s consumers are hopeful, but holding back on big spends
Home loan enquiries volume shrank 1 percent in October-December, originations by 6 percent in a sign that potential borrowers are cautious and bankers even more so
BUSINESS
Amid recession gloom, fund managers hope for a China boost
Cash levels with fund managers have been above 5.0 percent for 17 consecutive months; this length of time is eclipsed only by the 32-month DotCom bear market.
BUSINESS
MC Long View: No triggers for HDFC Bank re-rating
The merger with HDFC will determine HDFC Bank stock’s performance over the next few months. Analysts worry that the costs associated with the merger would be significant, already visible in the high operating expenses in Q4FY23.
BUSINESS
Interest rate swaps are signalling a pivot in the making
Swap rates were right in predicting the RBI’s fast-paced rate hikes that began in May 2022. It is likely the current rate cut signals of swaps are right too
BUSINESS
MC Long View: Further de-rating seems to be on the cards for Bajaj Finance
One of the key factors behind Bajaj Finance’s stock-losing investor love is the re-emergence of banks as the go-to exposure to India’s financial sector. The verdict on the stock, however, is still optimistic as 23 brokerages have a buy rating though valuation remains a worry
BUSINESS
IMF sees real rates falling sharply, but don’t ignore the caveats
The IMF is projecting a significant fall in real interest rates in emerging economies in the long term with that of China to be near zero by 2050 led by demographics and productivity factors
BUSINESS
Moneycontrol Pro Panorama | The earnings juggernaut is about to roll: It's time to take stock
In today’s edition of Moneycontrol Pro Panorama: Can Congress recover from its woes, SEBI's responsible message push for advisors, global food inflation moderates further, double whammy for Mphasis, and more
BUSINESS
Out-of-syllabus pause gives RBI time to fret and freedom to markets
On the whole, the RBI’s decision of keeping policy rate unchanged and accompanying hawkish statement seem to be the best course of action for now. But will it have the desired effect on inflation is a critical question.
