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
BUSINESS
Rupee’s resilience is all about RBI
While the rupee’s recovery against the dollar can be attributed to the fall in oil prices, India’s central bank actually gets much of the credit.
BUSINESS
With digital woes behind it, HDFC Bank now needs a friendlier world
Analysts have kept the faith and most still highlight HDFC Bank's comparatively pristine asset quality as a key strong point
MARKETS
From Russia with love—raging inflation
While India's trade with Russia and Ukraine is minuscule, its dependency is sizeable when it comes to sunflower oil, certain fertilisers and materials used in infrastructure projects
MARKETS
Between crude and the US Fed, the rupee has no escape
A wider current account deficit would mean India has to find more dollars to finance it. Foreign investors need to bring in dollars through direct investment or invest in Indian equities and bonds. Further, India’s services exports need to increase. All these are unlikely, economists at Barclays say.
BUSINESS
A hawkish Fed is a bigger threat to the rupee than Russia’s war
Economists reckon that the RBI would choose greater market intervention to support the rupee than tweak interest rates
MARKETS
As US limits Russia’s forex reserves use, central banks may aim for diversification
The limitations imposed by the US on Russian central bank for using its forex reserves may trigger central banks across the globe to rethink on diversifying their forex assets.
MARKETS
Beneath rouble’s rubble, rupee gets a collateral damage
The Russia-Ukraine conflict has triggered a rush to the safety of the dollar and most emerging market currencies have depreciated. Additionally, the rupee faces pressure due to India’s high oil imports.
BUSINESS
COVID-weary economy faces expensive energy bar amid Ukraine crisis
While the third quarter GDP data may show a rebound, it has already been overtaken by the adverse economic effects of the Russian invasion of Ukraine
