BUSINESS
For banks, cheaper deposits are not easy to come by
Declining CASA ratios are adding to the cost of funds for many banks, thereby forcing them to up lending rates as well to manage margins. The problem may persist going ahead as interest rate differentials persist
BUSINESS
RBI has a case to rethink on the proposed liquidity norms on tech-enabled retail deposits
RBI wants banks to be ‘innovative’ in mobilising deposits even as it is framing a rule that’ll essentially burden banks if they use digital channels to get deposits.
BUSINESS
RBI Governor Shaktikanta Das is in no hurry to cut interest rates
In the August review, Das has made a convincing case for the MPC to continue the status quo till the retail inflation falls to the 4% mark. That aligns with the stated position of majority members in the last nine meetings.
BUSINESS
Socialising losses is a bad idea, but PSBs have been doing it all along
Every loan loss mandates banks to provide fully for such loans. In turn, this impacts profitability and capital. In the case of PSBs, the burden of capitalization falls on the government.
BUSINESS
Why is bank credit growth slowing down?
Incremental deposit growth has overtaken credit growth in recent months as banks went aggressive on deposit mobilisation and credit growth slowed following RBI action
BUSINESS
Will the MPC blink this week?
The 8th of August announcement by the RBI Governor is likely to be a dud event for markets. Expect no fireworks for now.
BUSINESS
Banks get a Rs 8,500 crore worth pot of gold from the bottom of the pyramid
Should banks alone be blamed for heavy penalties charged on non-maintenance of minimum balance? In all fairness, state-run banks have been under tremendous pressure by the government to open more accounts.
BUSINESS
Opinion | On technology, RBI must send a more nuanced message to banking industry
The regulator should ensure that its warnings do not have the effect of discouraging tech-enabled transactions. Instead, banks will have to learn to live with the risks of faster transactions, albeit after adopting adequate safeguards.
BUSINESS
RBI’s bank-like PCA framework for bigger co-op banks is good news for depositors
In terms of financial health, most of these banks have been walking on a thin rope. These banks needed more effective monitoring of financials and early recognition of stress, which is what the new PCA framework will do.
BUSINESS
Government’s silence on WazirX mess is unfair to India’s 19 million crypto investors
From an investor point of view, the exchange’s recent announcement to socialise losses is grossly unfair. The key question is why would customers pay the price of WazirX’s inability to safeguard investments?
BUSINESS
India has a small bank problem, and it needs to act soon
Smaller banks are struggling to stay afloat for different reasons. Many have shut shop, others remain as zombie banks.
BUSINESS
Will the government walk the talk on IBC reforms announcements?
In the Budget, FM Nirmala Sitharaman announced a slew of measures to make the IBC process faster. That’s great news to de-clog the system, provided execution is proper
BUSINESS
Did Budget 2024 just add to the woes of PSU banks?
FM Sitharaman’s Budget lacked any major banking sector reforms, except some finetuning of the IBC process. It’s a missed opportunity
BUSINESS
Economic Survey 2023-24 has a word of caution for banks: Resist the lure of short-term profits
In recent years, there have been several cases where banks have been caught red-handed selling products to customers that they don’t require or understand well.
BUSINESS
The $230 million crypto theft at Wazirx a wake-up call for Indian regulators, government
Time and again, the RBI has been cautioning investors on crypto currencies, calling it gambling. This market has been drawing more investors, despite India not having a regulatory framework on crypto. This scenario can’t continue
BUSINESS
Budget Snapshot | Will IBC reforms get a push from FM Sitharaman?
IBC process needs to be lot quicker. Timeframe needs to be cut to improve recovery percentage for creditors
BUSINESS
Indian banks may have an agri loan problem ahead
Increasing pace of bank lending in the agriculture sector vs falling contribution to GVA suggests potential build-up of stress.
BUSINESS
Five management lessons for aspiring fintechs from Paytm Bank fiasco
Had PPBL played by the book, Vijay Shekhar Sharma could perhaps have built a pan-India bank riding on the popularity of the Paytm brand and tapping the government’s fintech push. In that sense, it is a wasted opportunity.
BUSINESS
Who will bell the modern-day loan sharks?
Today’s illegal loan apps are nothing but tech-enabled avatars of the old local moneylenders
BUSINESS
Budget 2024: It’s time for the government to walk the talk on bank privatisation
With record low NPAs and strong capital ratios, public sector bank balance sheets are the healthiest in a decade. There are better chances of finding buyers now. But actual execution will require strong political will
BUSINESS
Exclusive | Citibank to look for a buyer for its India retail business; no impact for existing customers, employees due to consumer biz exit
Post the exit from consumer business, Citibank will focus on the wholesale business and will continue to invest in expanding that segment
BUSINESS
Loan Moratorium | Don’t sideline the RBI
Interest waiver and loan moratorium started as an RBI scheme — and not as a government scheme to provide relief to borrowers. Ironically, now the RBI is a mute spectator
