BUSINESS
Unsecured loan books develop cracks. How big a worry is this for Indian lenders?
For years, banks and NBFCs were engaged in an intense rivalry to grow their loan books, perhaps forgetting the cardinal rule of lending—assessing a borrower's creditworthiness. Probably, they are having to pay a price for it now
BUSINESS
Banking Central | Time may be right for RBI to frame rules on use of AI in banking
RBI Governor Shaktikanta Das recently advised the banking sector to approach AI adoption with caution
BUSINESS
Moneycontrol Pro Panorama | Retail loan parade of non-banks is over
In October 24 edition of Moneycontrol's Pro Panorama: FII selling fuelled by US interest rates, urban FMCG demand stress a cause of concern, October MPC minutes reveal members' dovish mindset, Russia looks victorious in battle of attrition with Ukraine, and more
BUSINESS
Chart of the Day | Indian banks are increasingly adopting AI in their daily operations
As per the RBI article, while both private and public-sector banks are increasingly emphasising on AI and related technologies, the pace of increase is higher for private banks
BUSINESS
October MPC minutes show there is a dove in the new batch of external members
Nagesh Kumar, the only MPC member who voted for a rate cut in the October policy, argued that a rate cut could help revive demand and help boost private investment. Kumar makes a convincing argument for a rate cut
BUSINESS
For RBI researchers, a durable alignment with inflation target is now in sight
Interest rate hikes have worked well to contain demand and inflation, says an article co-authored by deputy governor Patra in the RBI Bulletin. The RBI has hiked interest rates by 250 basis points since May 2022 to fight inflation
BUSINESS
RBI's proactive action on MFIs shows some firms failed to learn from the 2010 crisis
The RBI had given sufficient time to MFIs charging excessively high rates to revise their interest rates downwards. Some got the message; some didn’t.
BUSINESS
Banking Central | How banks can check the flight of funds and get savers back
Bank deposit rates need to be hiked by at least 1-2 percent to woo back the depositor. Else, they need to prepare for alternative borrowing sources to raise resources
BUSINESS
Moneycontrol Pro Panorama | RBI flags emerging challenges to monetary policy framework
Moneycontrol's Pro Panorama October 16 edition: The future of loan demand as envisioned by bankers, conflict and chaos affects global merchant trade, high-end real estate gets a breather from millennials, states should consider taxing agriculture, and more
BUSINESS
Chart of the Day | What do bankers think of loan demand going forward?
Bankers are bullish. This optimism could be due to the increased capex spending plans of corporations and start of a lower interest rate era that could spur consumer demand
BUSINESS
RBI’s confusing messaging on Big Tech, AI risks to banks is not helping
The RBI governor’s caution regarding the perils of excessive technology in banking isn’t new. We have heard this warning before. Does the regulator know something that we don’t?
BUSINESS
Don’t read too much into the Great Indian Rupee Melodrama
The rupee is swaying to global whims, not tanking. A gradual depreciation in the rupee's value could be part of the RBI's plan to neutralise excess capital inflows
BUSINESS
Banking Central | How RBI tells banks to mind their core in the age of financial supermarkets
The trigger for the circular could have been rapid expansion of non-core businesses by banks across group entities, selling same products across different group companies.
BUSINESS
Shaktikanta Das’ warning on ‘growth at any cost’ is an eye opener for aggressive MFIs
Some NBFCs have been pushing credit to customers beyond their borrowing capacity by imposing stiff performance targets on employees
BUSINESS
Quick Take | As RBI changes stance to 'neutral', countdown begins for a rate cut in Dec
The MPC has given a clear signal that a rate rethink isn’t too far by changing the monetary policy stance. When and how will depend on the inflation trajectory
BUSINESS
Chart of the Day | A look at the link between vegetable prices and food inflation
Vegetable prices are a decisive factor in determining inflation trends at this point. There are early signs of food inflation easing but it is too early to say for sure. The MPC should be more worried about vegetable prices now than the Israel-Iran skirmish
BUSINESS
Banking Central | What RBI rate-setters are planning as inflation warriors face a crude threat
The MPC is scheduled to meet on October 7-9 to decide the interest rates
BUSINESS
Will Iran-Israel war cause an agenda shift in the just rejigged MPC?
The MPC meet scheduled for October 7-9 will mostly likely set the ground for a rate cut two months later. The MPC is set to reverse its rate stance unless big surprises happen in the meantime
BUSINESS
Non-banks turn to money markets as funding channels dry up after RBI nudge
Even after this shift bank funding remains the biggest source. NBFCs borrow from banks to then lend to borrowers at a margin
BUSINESS
Banks have a new-found love for industries. Sign of a reviving economy?
The shift in lending patterns is indicative of critical undercurrents in the economy. Money typically flows more to segments where economic activity is strengthening
BUSINESS
Toxic work culture: How to stop product misselling in banks
We know the work culture in banks isn’t the best, but what is the solution? Here are five ways to address the problem of product misselling and toxic work culture in banks.
BUSINESS
Banking Central | What does data shows about the health of our cooperative banks?
Latest available industry data on coop bank financials show mixed trends in asset quality and profitability but an overall improvement in financials.
BUSINESS
High gold prices spur growth in loans against jewellery; is there a risk build-up here?
Gold prices have escalated in recent years and are up by 25.96 percent year-over-year. This makes the yellow metal a more valuable commodity for banks to give loans against.
BUSINESS
Moneycontrol Pro Panorama | Dear Guv, how about showing some love for growth?
September 25 edition of Moneycontrol Pro Panorama: The RBI must give up its obsession for combating inflation and shift gears to aid growth
