BUSINESS
Evergrande seems like China’s Lehman moment, reminds of IL&FS, says Uday Kotak
There is panic in global markets over the expected collapse of the debt-ridden Chinese property giant
BUSINESS
Exclusive Interview | Bad bank a step in the right direction, says Morgan Stanley’s Sumeet Kariwala
The incorporation of a bad bank with a sovereign guarantee on security receipts is a positive and will impart credibility plus a likely floor on asset recoveries, says Kariwala
BUSINESS
Banking Central | Should political parties meddle in a banker’s job?
If banks need to operate professionally, politicians have to stay away from loan 'mediation', 'facilitation' or whatever else they call it
BUSINESS
Analysis | What the Bad Bank deal really means for Indian lenders
The price at which the asset transfer happens will be key. Banks will have to invest around Rs 5,000- Rs 6,000 crore in the NARCL which is approximately what they are likely to get back with the 15 percent upfront cash transfer during asset transfer. Rest will depend on a resolution within five years. That’s the trickiest part.
BUSINESS
Exclusive Interview | At HDFC Bank we are a play on the GDP. We don't chase a particular mix, says Kaizad M Bharucha, Executive Director
Kaizad Bharucha speaks about the HDFC Bank’s business focus, expansion plans, industry trends, competition from state-run rivals, and the new crop of fintechs, which he says are an opportunity, not a threat.
BUSINESS
Moratorium on AGR dues: Banks may have some relief on telecom exposure for now
The moratorium on AGR dues would instantly avert a default risk for banks. This is good news.
BUSINESS
Srei seeks debt recast by lenders, RBI approval to get investors on board
The Kolkata-based group is in the middle of a severe financial crisis and hopes to get much-needed survival capital. Lenders have tightened the screws on its cashflows and are waiting for the outcome of an ongoing forensic audit.
BUSINESS
Srei Infra CEO Rakesh Bhutoria resigns
Prior to joining Srei, Bhutoria was the Group EVP & Head – Commercial Banking & Strategic Initiatives at IDFC Bank
BUSINESS
Banking Central| How are state-run banks treating their young bankers?
PSB managers blindly follow instructions from bureaucrats and target junior officers at the slightest hint of trouble. It is time to shun this ham-fisted approach and carve an independent path
BUSINESS
With insiders at the helm, Ujjivan is readying for a reset
The tussle between the holding company and the small finance bank is an open secret. A series of exits from the bank, including that of the chief executive officer in the recent past, is no coincidence. With Carol Furtado and Sanjeev Barnwal in the lead, Ujjivan may be readying for a comeback.
BUSINESS
Explainer| UCO Bank out of RBI’s PCA watchlist, lending curbs after 4 years. What is PCA all about?
After four years, the Reserve Bank of India (RBI) has finally let the Kolkata-based UCO Bank out of the prompt corrective action (PCA) list. The performance of the bank was reviewed by the Board for Financial Supervision and it was noted that, as per its published results for the year ended March 31, 2021, the bank is not in the breach of the PCA parameters.
BUSINESS
Citibank's retail assets good bet for local contenders to bolster existing affluent customer base, says CLSA
The shortlisted contenders for Citi's Indian assets include Kotak, HDFC Bank, Axis and DBS Bank.
BUSINESS
Banks’ share investments jump unprecedented 26% in fortnight: RBI data
Experts said banks may have aggressively participated in IPOs and in some cases, converted debt to equity
BUSINESS
Banking Central | Microlenders at critical juncture, giving mixed signals on business recovery
Cues from micro borrowers are important as this segment gets impacted at the first hint of an economic shock but also recovers quickly. If the third wave is contained, microloans may rebound sharply.
BUSINESS
Former SBI Chief Rajnish Kumar joins Andhra government in advisory role
After his retirement from SBI, Kumar took up various assignments including as exclusive advisor to Kotak's Special Situation Fund and as an independent non-executive director at HSBC.
BUSINESS
Small NBFCs continue to struggle for funds despite RBI’s liquidity push
In the wake of Covid-19, the RBI announced several measures to spur bank credit to small NBFCs. But banks haven’t been forthcoming.
BUSINESS
Explained: AT1 bonds, their risks, rewards and why banks issue them
Additional Tier 1 bonds do not have a maturity date and are perpetual in nature. These debt instruments offer higher returns to investors but they also carry a higher risk.
BUSINESS
Senior-level exits haunt AU Small Finance Bank despite management assurances
The management says the executives quit for personal reasons, but the resignations have spooked investors and sparked concerns about asset quality. Analysts say NPA numbers seem fine so far but they seek more transparency.
BUSINESS
Banking Central | Politicians should be kept away from co-operative banks
An RBI expert panel has made several recommendations, including a merger of weak co-operative banks, but the report is silent on the biggest issue—political involvement in the running of co-operative banks. Until this problem is looked into, co-operative banks will struggle
BUSINESS
Fresh challenges emerge for Ujjivan in tough market
The differences between promoter and SFB management have resulted in senior and mid-level exits but bigger problems await Ujjivan on the asset quality front.
BUSINESS
Explained | The good, bad and ugly of Assam’s microfinance relief scheme
There’s immediate relief for every stakeholder. But, will Assam’s scheme set a bad precedent for the industry? The RBI isn’t too enthusiastic and there is a fear such schemes will affect credit culture adversely.
BUSINESS
Interview | India will be one of the few countries to offer high productive nominal growth in the medium term, says Morgan Stanley's Chief India Economist Upasana Chachra
At the core of the issue of poverty and income inequality is the creation of well-paying productive jobs. As such, the key for policy makers should be to push growth rates higher for longer, which can help address these issues.
BUSINESS
Exclusive Interview | I see a lot of uncertainty around the point estimates of future inflation, says MPC member, Jayanth Varma
My professional training in finance teaches me to think of most decisions as a tradeoff between risk and reward. Applying this risk-reward analysis to macroeconomic decision making is even more challenging than it is for decision making at the level of individuals and enterprises.
BUSINESS
Banking Central | Some tough questions to the MPC
The MPC has been following a pattern, largely supporting growth (remaining on an accommodative stance), and ignoring near-term inflation spike. Jayanth Varma, one of the MPC members, has been the lone voice questioning this stance.
