BUSINESS
Bank branches set to be next battleground for life insurers
As Life Insurance Corporation seeks to leverage tie-ups with banks to sell policies, it also has to cope with the swiftness and agility of private rivals in terms of customer focus.
BUSINESS
Here comes the sun for banks but it may burn some
A three-year high credit growth, lower credit costs and rate hikes that portend an increase in margins have created a sweet spot for banks
BUSINESS
RBI Bulletin: Forex reserves the only reliable cushion against global volatility
Black swan events such as 2008 financial crisis, taper tantrum and pandemic can result in potential dollar outflow of 3.2 percent of gross domestic product (GDP), an RBI study shows.
BUSINESS
The lesson for RBI from the Dhanlaxmi Bank fiasco
The pace at which the banking regulator has been trying to resolve the problems at Dhanlaxmi Bank leaves much to be desired
BUSINESS
RBI’s rate hikes herald testing period for India Inc’s debt-servicing heft
Companies could be hurt by the rising cost of money and input cost pressures that are crimping their profit margins
BUSINESS
RBI would pause for breath after December on hikes, says QuantEco’s Shubhada Rao
"My assessment it that in February policy, the RBI could take a pause to assess if the government’s fiscal position is changing. The new fiscal year budget would be out and the fiscal position for FY23 would be known."
INDIA
Bond market shows faith and fortitude after RBI hikes repo rate by 50 bps
Ten-year bond yields fell 7 basis points to 7.451 percent from its previous close of 7.518 percent, while shorter four-year bond yields dropped 12 basis points, three-year bond yields lost 9 bps and two-year yields erased over 14 basis points
BUSINESS
As investment cycle perks up, infra, capital goods to have bright FY23
The fourth quarter performance of infrastructure companies didn’t disappoint investors but it didn’t give enough comfort as well. In the BSE 500 population, infrastructure firms reported a neat 66.6 percent year-on-year growth in net profit at the aggregate level.
BUSINESS
Why the market is unable to read the RBI’s rate hike sizes
If Indians lose confidence in their central bank in reining in inflation, consumption demand would be hit hard
BUSINESS
Financial companies reported a bonanza in FY22; outlook upbeat for next year
The BFSI sector had a strong fourth quarter, making it one of the key drivers of earnings growth among listed companies. On an aggregate basis, listed banks reported stellar net profit growth of 87% YoY, riding on lower provisions thanks to a drop in stressed loans.
MARKETS
RBI’s tightening path has a ‘real’ argument in favour of growth
CEA argues RBI’s rate hike won’t hit growth as real interest rates would be low. Many economists agree but give different figures as to what exactly are the real interest rate and neutral rate. An RBI study in 2013 said that real interest rates matter more in investment decisions than nominal rates
BUSINESS
LIC made Rs 42k crore gains via share sale in FY22, remains contrarian equity investor
The insurance behemoth will focus exclusively on increasing the share of non-participatory products to drive growth and profitability in FY23.
BUSINESS
What do LIC’s Q4 numbers tell us?
Market share and costs remain pain points for the insurance behemoth but it has managed to keep a decent business growth.
BUSINESS
Winter in markets gives RBI a cold; it could get worse
The buffer against unfriendly markets is low and the contingency fund needs to be beefed up to withstand the impact
BUSINESS
Are you a broker or broke? Compliance and tech will decide
Tighter disclosure requirements and fortified margin rules are taking a toll on small brokers who don’t have the scale of large, tech-enabled broking houses
BUSINESS
As bond yields march ahead, banks may run up trading losses in FY23
The opportunities to make money off trading would be stymied by a hawkish monetary policy. Bond yields have risen across markets globally, which puts further pressure on domestic government paper.
BUSINESS
Will the sun rise on PSU banks’ return on assets?
PSBs have been losing money on their capital, thanks to the long-drawn credit cycle where they paid high credit costs due to delinquent loans. That may be changing now, say analysts
BUSINESS
As gold loans lose shine, lenders face growth test
Small businesses, a significant portion of gold loan borrowers, are seeing their balance sheets under pressure again. This could jeopardise their repayment capacity
BUSINESS
Interview | Shriram Transport Finance not in a hurry to become a bank, says MD Revankar
The definition of banking in India is restrictive and it is better to be an NBFC for now, Revankar told Moneycontrol.
BUSINESS
LIC IPO: Insurer to focus on boosting policyholders’ returns, says chairman
The insurance behemoth will try to arrest its market share loss, ramp up its digital channels and make tactical tweaks on equity investments to please policyholders, Chairman MR Kumar says
IPO
LIC listing: How private sector peers fared in their debut
Listing gains are more a function of broad market sentiment and conditions and not just the share issuing company’s business fundamentals alone
MARKETS
Why is the Reserve Bank of India buying gold?
Diversification of forex assets, away from the dollar, has gained popularity after Russia’s invasion of Ukraine invited international sanctions against the former
BUSINESS
Indian banks’ bumper profits don’t show economic scars
The aggregate net profit of 27 listed commercial banks has shown an 86 percent year-on-year jump in the March quarter
BUSINESS
Interview: Elevated inflation here to stay, repo rate could be 5.5% by December, says HSBC’s Pranjul Bhandari
Contributors to sticky inflation could include higher prices of electricity and agricultural produce, which are expected to kick in later this year.
