MARKETS
India's swaps are ahead of bonds in anticipating rate hikes
Swaps have been a better gauge of interest rate hikes and when they have not been accurate, swaps have at least been a true reflection of the inflation situation.
BUSINESS
Indian economy has got long COVID, and a 12-year struggle awaits
On a cumulative basis, the economy has to make up for a staggering Rs 52.6 lakh crore of output lost
BUSINESS
Reverse merger with IDFC would set IDFC First Bank stock free
IDFC’s complex corporate structure with step-down subsidiaries has meant the process has been glacial. While a reverse merger with its parent may not be detrimental to IDFC First Bank, uncertainties surrounding the process need to be removed for the bank’s shares to perform.
BUSINESS
Interview | HDFC Life’s strong growth to sustain, says MD Vibha Padalkar
The insurer expects claims to normalise to historic levels now that the pandemic has receded
BUSINESS
How do ICICI Bank and HDFC Bank stack up, in five charts
ICICI Bank has been closing the valuation gap with HDFC Bank, which is still the most valuable private sector lender but is not able to command the premium it used to. Here's how the rivalry is shaping up
BUSINESS
Credit cards a good carrot for NBFCs amid tightening regulation
The change will mean that NBFCs can now earn interest income on their credit cards as the credit would be from their own balance sheet
BUSINESS
ICICI Bank tops rival HDFC Bank in valuation multiple for first time
Strong investor interest has helped the lender topple rival HDFC Bank as an expensive stock in what some analysts would call a “crowded trade,” which means a position or theme embraced by a large number of investors.
BUSINESS
The long and short of HDFC Bank stock’s prospects
While there are reasons to conclude that the HDFC Bank-HDFC merger is a win-win for both, there are hurdles to cross over the next 12-18 months. This has begun to sink in and the initial investor euphoria has waned.
BUSINESS
India’s balance of payments is getting into rough waters
The forex reserve heap is down $38 billion from its record high. Of this, a fall of $28 billion has come in the last five weeks
BUSINESS
NBFCs expected to put up a good Q4 show but watch out for outlook
Loan growth and net interest income for NBFCs are catching up fast, yet still below pre-Covid levels
BUSINESS
17-month high inflation set to hurt India’s consumption recovery
Retail inflation is now broad-based, hitting household budgets from every corner. It comes at an unfortunate time when Indians finally have the opportunity to get back to their pre-pandemic spending on both goods and services
BUSINESS
Banks set to report strong recovery from pandemic, outlook critical
Pain points for banks were loans to small businesses, especially those given under the Emergency Credit-Linked Guarantee Scheme. Microfinance loans, too, had come under pressure because of the spread of the Omicron variant in the March quarter
BUSINESS
Between digital assault and regulation, NBFCs have it tough
As regulatory arbitrage comes to an end thanks to the central bank and as nimble fintech companies nip at their heels, NBFCs will have to reinvent themselves
ECONOMY
RBI Policy: Reverse repo had to die for a non-disruptive liquidity withdrawal
The uncollateralized SDF allows greater flexibility to the RBI in liquidity management as against the reverse repo where the central bank needs to give collateral in the form of government bonds.
MARKETS
Brace for bond yields to rise as RBI pivots towards withdrawal of liquidity
The government will have to pay a higher yield on its market borrowings in the coming months. The Centre will borrow Rs 14.95 lakh crore from the bond market this year, of which Rs 8.45 lakh crore will come in the first half.
BUSINESS
India’s home-loan market set for a churn after HDFC-HDFC Bank merger
Housing finance companies face a choice: become a niche player or merge with a bank. As things stand, the home-loan market is firmly in the grip of banks.
BUSINESS
HDFC twins joining up is a merger of equals but beware the regulatory costs
After the merger, regulatory requirements of CRR, SLR, priority sector lending and liquidity coverage ratio would increase given the combined balance sheet size. HDFC and HDFC Bank have asked the RBI for more time to meet these norms.
BUSINESS
As inflation tests RBI, managing expectations may get painful
The RBI governor has taken a soft tone on inflation because he believes it is due to supply-side factors. But they could lead to higher inflationary expectations
BUSINESS
Axis Bank-Citibank deal: India’s credit card market is at crossroads. Which way will it go?
Credit card spends have survived the rapid expansion of the Unified Payments Interface, which continues to eat into the payments pie. But with BNPL posing a fresh challenge, issuers face a challenge in widening credit card usage.
BUSINESS
UPI may begin to bite at payments revenue pie for banks, NBFCs, fintechs
A waiver of the merchant discount rate means payment processing entities are losing out on revenue as the share of UPI grows
MARKETS
India hasn’t caught up with bleeding bonds globally
Bond yields in most markets have risen in the past month, wiping out capital gains, and while India has not been spared, the damage has been rather mild. Moneycontrol explains why.
BUSINESS
SBI is ready for investor love with a scrubbed-up book
Analysts believe the lender’s return on equity ratio is set for consistent improvement, as it earns more out of its loan portfolio by clearing away the debris of toxic loans and getting better borrowers incrementally
BUSINESS
What is wrong with Paytm?
India’s biggest digital wallet company is struggling to convince investors about the value of its business. The chasm of value perception between Paytm and its investors has only widened since its listing in November
BUSINESS
IndusInd Bank has a few bumps ahead before a smooth ride
The lender has several holes to plug, starting with its microfinance vertical
