BUSINESS
Budget Snapshot: Will Budget 2025 prioritise stress resolution in banking?
An analysis by CareEdge Ratings highlights worsening delays in the corporate insolvency resolution process (CIRP). By September 2024, over 71% of ongoing CIRPs exceeded the 270-day completion timeframe, up from 63% in September 2022 and 67% in September 2023.
BUSINESS
Banks’ Q3 business updates: Why is credit growth slowing sharply?
Business updates of banks suggest slowdown in credit growth and rise in stress across certain categories. Do these signal suggest a deeper demand slowdown?
BUSINESS
Bank credit slowed down in 2024, but could bounce back in 2025
Overall, the data shows that bank credit marked a slowdown in the year 2024, falling to 10.6 per cent from 20.9 per cent, with only loans to industries showing a pickup.
BUSINESS
Zooming gold loans, rising defaults: What does this combo tell us about the Indian economy?
If there is rising stress at the bottom of the pyramid, such as in sensitive gold loan and microloan portfolios, the RBI should be worried. It should acknowledge the problem rather than pretending all is well in the economy.
BUSINESS
The 2025 New Year resolutions that will not be made…
It’s not just you and me—there are a few others who also want to share their big resolutions for 2025
BUSINESS
Chart of the Day | How banks' CRR liability evolved in the flexible inflation targeting era
Data shows that the FIT era freed up funds for banks enabling them to use this for productive lending purposes
BUSINESS
MPC minutes point to pro-growth lobby gaining ground
The arguments by MPC member Nagesh Kumar in favour of a rate cut were based on a pressing need to support the slowing economy with a cut in interest rates. Ram Singh too supported this view.
BUSINESS
Chart of the Day | A puzzling dichotomy is shaping up between housing prices and bank lending
The House Price Index and home loan growth trends in banks show a divergent trend
BUSINESS
Bank lending to NBFCs has dried up this year; can CRR cut turn the tide?
NBFC funding by banks may not pick up in the foreseeable future despite the liquidity infusion
BUSINESS
Will the RBI, under Malhotra, have a rethink on crypto?
The RBI and the government will be making a mistake by ignoring the latest WazirX episode in the Indian crypto market. It signals a larger problem of safety of transactions and lack of security for investor money.
BUSINESS
Chart of the Day | Even as banks turn cautious, collateral-free agriculture loans set to increase
Bank lending to agriculture segment grew by just 6.5 percent between March 2024 and October 18 compared with 10.6 percent in the comparable year-ago period as banks slowed lending
BUSINESS
Why the 50 bps CRR cut may not move the needle
If banks don’t respond to the CRR cut by passing on the excess liquidity to the borrowers through cheaper loans, the ball will be back in the RBI’s court to offer a growth stimulus post the disappointing Q2 numbers.
BUSINESS
Shaktikanta Das era ends at Mint Road — RBI governor for all seasons
Das’s six years in office saw him steering monetary policy through a pandemic bringing the world down to its knees, a banking crisis roiling the world's largest economy, two major wars and raging inflation.
BUSINESS
How the MPC just dodged a curve ball on a sticky wicket
A 50 bps CRR cut, and rates on hold is a safe play for the MPC, caught in a growth-inflation conundrum, at this point.
BUSINESS
Chart of the Day: How GDP, inflation numbers responded to RBI rate actions over years
RBI has been struggling to find the right balance in terms of rate actions. Data suggests growth has taken a hit whenever RBI held rates high for too long
BUSINESS
A CRR cut is more probable this week than a rate cut
The RBI now has a ‘growth’ problem rather than an ‘inflation problem’. It cannot ignore the growth slowdown. At the same time, the MPC needs to time the rate cut carefully
BUSINESS
Chart of the Day | What RBI data tell us on trend in fake notes over last 5 years
The sharp jump in fake 500-rupee currency notes came in the year 2021-2022 when the number doubled to 79669 mpcs from 39453 mpcs in the previous fiscal year
BUSINESS
What the latest IBC data tell us on recovery rates
Recovery rate from IBC deals kept falling as delayed resolutions proved costly.
BUSINESS
A central banker's dilemma: To talk or nor not to talk!
Patra’s speech, in a way, reflected the ongoing dilemma within the RBI top brass on how to manage the communication part of the monetary policy at a time when the policymakers themselves aren’t sure of the point of a rate pivot
BUSINESS
Is RBI turning too conservative on credit risk amid growth worries?
Stifling credit growth in the name of risk management is akin to throwing the baby with the bathwater. Government has sent the right message.
BUSINESS
PSBs are doing fine on efficiency, but need to improve customer experience
PSBs have improved efficiency but often lack in providing good customer experience. A big reason is inadequate number of employees to manage the huge customer base.
BUSINESS
Chart of the Day | SBI's asset quality has improved despite a tricky loan market
SBI is often seen as a proxy of India’s banking sector and broader economy. Hence, the trends seen in SBI’s balance sheet are a reflection of the overall health of the economy
BUSINESS
Bank NPAs are down, but watch the SMA-2 loans closely
A look at the second quarter results of banks suggests that there has been a rise in the special mention category-2 loans (SMA) of some large banks. These can be tricky for the lenders if things don’t go according to plan.
BUSINESS
What do SBI’s July-September numbers tell us?
SBI numbers suggest an overall improvement in performance, rebalancing of loan growth from retail to corporate/SME and improvement in asset quality
