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
BUSINESS
SEBI wakes up early to the wild west of bond market
A SEBI consultation paper has proposed to regulate online bond platforms floated by fintechs on concerns that these entities operate in a regulatory vacuum and do not have robust KYC processes.
BUSINESS
Life insurance results preview: Low base to prop up growth in Q1
The slower-than-earlier rate at which life insurance policies are being sold, could see profitability being more measured during the quarter.
BUSINESS
US inflation outpaces India’s. Then why the dollar gets stronger than the rupee
The outcome of elevated inflation is erosion in the value of an economy’s exchange rate. If a country’s inflation is higher relative to its trading partners’, its currency has to adjust down.
BUSINESS
Bank results Q1 preview: High profit growth likely but watch out for treasury hit
Low-cost Current and Savings Account (CASA) deposits would keep banks’ cost of funds low in a rising interest-rate environment even as lenders pass on policy rate hikes to borrowers through lending-rate increases
BUSINESS
NBFCs Results Preview: Q1 will sparkle but look out for trouble
NBFCs may report high double digit balance sheet growth and resilient asset quality but investors need to watch for margin compression ahead
EARNINGS
RBI study finds lazy banking rewards public sector banks but not private lenders
The key reason could be the approach in pricing credit risk. Past bad loan cycles have shown that private sector banks have demonstrated a more robust credit risk pricing ability compared with their public sector counterparts.
BUSINESS
It's going to be a mixed bag of first-quarter earnings for investors
Given the mixed performance expected by companies for Q1 of FY23, analysts have slashed earnings per share estimates
BUSINESS
As loans lift banks in Q1, treasury desks may weep
Banks held 30 percent of their deposits in sovereign bonds at the end of June, far higher than the regulatory minimum required
MARKETS
RBI measures will slow down rupee’s depreciation... And that’s enough
These measures are not a grand design to reverse the rupee’s direction. In fact, it would not be a great idea for the central bank to target a directional change when external factors heavily favour the dollar.
BUSINESS
Deposits make banks sweat as loans come easy in Q1
Banks will need to increase interest rates on deposits but this higher cost of funds will put pressure on their net interest margins
BUSINESS
Bank deposit rates may rise faster than before in the current cycle
A surge in treasury bill yields, large hikes in deposits by non-bank lenders armed with fintech tie-ups could push banks to hike deposit rates faster this time.
BUSINESS
India’s payment glass is half full but also half empty
The RBI, along with the government, has made digital payments cheap for the public. Now they need to make it lucrative for entities in the business of providing payments
BUSINESS
Central banks in Asia wedged between rate hikes and currency wars
The US Fed's fast-paced policy tightening has made it hard for Asian central banks to choose between hiking policy rates to stem capital outflows and inflation and let their exchange rates depreciate to support the still fragile economic recovery.
BUSINESS
A hawk eye on fintech should start with BNPL
Buy Now Pay Later has been touted as increasing financial inclusiveness, but at a time of rising interest rates, credit at the click of a button and without necessary safeguards, could snowball into a crisis
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
