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
Interview: RBI needs to ease off forex intervention, says Standard Chartered’s Sahay
A weak currency could complicate the inflation outlook but the RBI is rightly focused on curbing inflation through rate hikes, says Anubhuti Sahay, who believes that the latest data on gross domestic product growth won’t sway the central bank towards a pause
BUSINESS
Zerodha reaches the cusp of moderation after 12 years of scorching growth
While founder Nithin Kamath supports the tightening of regulations, he says the short-term impact on business cannot be ruled out. Superior technology has been its distinguishing factor but Zerodha, too, has faced glitches. In July, some demat accounts were said to have been hacked
BUSINESS
RBI has a long drive ahead on path to 4% inflation target
While economists expect inflation to average about 5 percent in FY24, the RBI would consider it a win only when the coveted 4 percent medium-term target is achieved.
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
Home loan lenders must tread carefully in developer loans as they look for margin boost
Investors are taking an optimistic view on HFCs, both on the growth front due to a housing market revival and on asset quality, with troubled project loans getting resolved.
BUSINESS
RBI faces a core challenge in its journey to drive inflation below 6%
Core inflation has climbed and remained above 6 percent for over a year now and it could make the RBI work harder to bring headline retail inflation into the 2-6 percent band even if other factors such as base effect and easing commodity prices drag it down
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
Why affordable housing finance companies seem expensive to investors?
The affordable housing finance market grew 20 percent in FY22 and is likely to grow by 18 percent in the current financial year, according to Care Ratings Ltd. That is faster than the banking sector’s home loan growth of 13 percent in FY22 and the 11 percent growth for HFCs.
BUSINESS
Q1 marks growth phase for India’s banks but warts are visible too
The top five banks by asset size accounted for half of the reduction in provisions and 53 percent of the drop in bad loans. This means small lenders are yet to recover completely
BUSINESS
Bond yields weigh on Q1 profits for banks, but road ahead looks smoother
With inflation easing and the rupee strengthening, there may not be a sharp jump in bond yields
BUSINESS
Five charts that show Indian consumers are optimistic but won't turn big spenders
Indian consumers are more optimistic than before about the prospects of employment and income. But inflation is adding a layer of caution when it comes to spending.
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
EARNINGS
SBI Q1 result | Net profit of Rs 6,068 crore, misses street estimates
SBI Q1 results: The mark-to-market hit dragged SBI’s non-interest income down massively to a mere Rs 2,312 crore for the reported quarter compared with Rs 11,802 crore a year ago
BUSINESS
As RBI gives an umbrella for rupee, bonds are left in the downpour
The benchmark 10-year government bond yield rose roughly 10 basis points while the rupee appreciated as the RBI Governor Shaktikanta Das highlighted inflation concerns after announcing a 50 bps hike in the repo rate.
BUSINESS
Investors warm up to IDFC First Bank, RBL Bank but more work needed
Shares of IDFC First Bank and RBL Bank have been on an upswing for the past one month but concerns over unsecured loans and higher operating expenses have not abated.
BUSINESS
Swaps sing a different tune as RBI rate-setters meet for policy review
Five-year swap rates have dropped more than 70 basis points over the past one month, a sign that investors are betting the RBI may begin to chop policy rates soon
BUSINESS
Life insurance Q1 show marks profitability, dominance of SBI Life
SBI Life’s June quarter metrics show that it pays to be the largest in the industry segment. SBI Life has made its investors happy by exceeding their expectations on business growth and trumping competition on profitability metrics.
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
Auction shows floating rate bonds have gone from saver to sinker
Cut-off price for floating rate bonds have been progressively lower, resulting in losses for investors and a hit to sentiment.
BUSINESS
Fed pivot or not, RBI may focus on reining in inflation
For the RBI, it’s easier to tackle inflation through policy rate hikes than through the exchange rate channel. The experience in 2013 shows that excessive intervention does not help when the tide is against the domestic markets.
BUSINESS
Why the stellar rally in banking stocks bypassed RBL Bank
Shares of RBL Bank are down 39 percent over the past year, though there has been some respite in the past month. Analysts, however, see a further downside and some have cut target prices again
BUSINESS
ICICI Bank vs HDFC Bank: A tale of outperformance
ICICI Bank’s valuation boost began more from HDFC Bank’s troubles than its own outperformance. But the first-quarter performance of both lenders shows that ICICI Bank’s outperformance is the main driver of valuations.
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
