BUSINESS
Banks must figure out how secured is a loan to an NBFC
The profile of loans that NBFCs give out has changed over the years. The share of unsecured lending has increased simply because the growth rates in these segments have been high
BUSINESS
Infra is booming again. Can banks keep pace, and avoid burning their fingers this time?
Though bank lending to infrastructure has slowed in the past five months, there are signs that bankers are taking a closer look at it again, reflected by the string of infrastructure bonds issued by some lenders.
BUSINESS
Moneycontrol Pro Panorama | MPC minutes portray a cautious Goldilocks
In today’s edition of Moneycontrol Pro Panorama: MNCs change strategy to do business in India, promoters losing board seats a game changer, solution to India’s subsidy problem, Go First’s insolvency plea a risky move, and more
BUSINESS
Banks must unlearn old deposit habits before dipping into infra lending
The increase in share of short-term deposits at a time when banks want to lend long-term loans to infrastructure projects is putting them at risk of asset liability mismatch
BUSINESS
Bank of Baroda must show it is special beyond the performance metrics
Stressed loan ratios are far better than its PSU peers, but they are still wanting when pitted against private sector lenders or even State Bank of India (SBI)
BUSINESS
Moneycontrol Pro Panorama | Requiem for India’s infra dream or a reality in the making?
In today’s edition of Moneycontrol Pro Panorama: US drug shortages an opportunity for India, investment advisers at risk of phasing out, will PLI scheme strengthen manufacturing prowess, El Niño's long-term effect on monsoon disturbing, and more
BUSINESS
Two-speed transmission of rate hikes could squeeze lender margins in FY24
With a large pile of deposits repriced higher and no scope to bring them down, banks have little elbow room to improve margins. In fact, margins would feel the squeeze. For NBFCs, it is tougher.
BUSINESS
RBI’s new rules on wilful defaulters make bank more accountable
If default is intentional then even new rules may not help in prevention but formalizing the recovery process brings its own benefits
BUSINESS
Moneycontrol Pro Panorama | The gap between sentiment and data
In today’s edition of Moneycontrol Pro Panorama: Indian startups face headwinds, defiant Indian economy not yet out of the woods, high stake game between Airbus and Boeing, Sachin Pilot’s Hamletian dilemma, and more
BUSINESS
RBI’s pause is a pivot killer with the 4 percent inflation target
RBI governor Das's emphasis on getting retail inflation down to 4 percent will mean the policy rate will stay high for longer
BUSINESS
RBI seen to stay in pause mode, but markets will seek clues on pivot
While the RBI may keep policy rates unchanged, any alteration in the stance would be seen as dovish by the markets.
BUSINESS
Moneycontrol Pro Panorama | Regulating the economy temperature gauge
In today’s edition of Panorama: SEBI proposes tightening disclosure for offshore funds, MGNREGA demand rises sharply, receding recession fears good sign for Indian IT, risky bets in business makes for better future, and more
BUSINESS
MC Explains : LIC’s transfer of funds to shareholders’ fund – is it a one-off event?
The transfer of funds will make more money available for LIC to pay dividends and issue bonus shares.
BUSINESS
RBI’s latest warnings show India’s banks need helicopter parenting
Evergreening is more sinister now as banks are indulging in the practice despite having complete knowledge of the risks involved.
BUSINESS
Moneycontrol Pro Panorama | Dancing elephants and awkward valuations
In today’s edition of Moneycontrol Pro Panorama: Tata Motors dominates electric car segment, new AI-based supervision model for ‘shadow banks’, term premium on government bond shrinks considerably, China's slow recovery and its impact on India, and more
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
