BUSINESS
Banking Central | Microlenders, grow slow, grow steady!
The microfinance industry is likely to face a tough phase in terms of growth and recoveries in 2025 but that is still better compared with a repeat of 2010 crisis triggered by bad lending practices
BUSINESS
Moneycontrol Pro Panorama | The many worries of Shaktikanta Das ahead of MPC December meet
In this November 28 edition of Moneycontrol Pro Panorama: WTO turns to AI to regains its lost glory, Chrome's dominance is unchallenged, fake note trends revealled by RBI data, Sambhal-like incidents put India's security at risk, and more
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
ECONOMY
Banking Central | Will rate-setters blink in monetary policy meet next month?
The clamour for a rate cut is rising. Will the MPC blink as the rate-setting panel gears up for the next review of the monetary policy from December 4 to 6?
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.
ECONOMY-2
Banking Central | And, MPC has a perfect case to defer rate cuts beyond December
The latest inflation numbers cast doubt on the MPC’s rate-cutting plans. The committee may have to wait longer to lower the rates
BUSINESS
Moneycontrol Pro Panorama | Time for MPC to move on from inflation obsession?
In this November 13 Moneycontrol Pro Panorama edition: Trump policy may hurt India's interest rate outlook, what G20 summit in Rio de Janeiro holds, markets under pressure as yields rise and earnings slowdown, climate threat to Kashmir’s cash crops, and more
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
Banking Central | Pushing credit to borrowers beyond capacity sets off stress alarm on small loans
There are signs of a large-scale borrower distress at the small borrower levels. This could have a spillover effect in the overall banking system if the trend persists
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
BUSINESS
Banking Central | How tough is the life of a banker in India?
As a bank executive, you need to deal with money every single day, the targets set by superiors and, lastly, the wrath of angry customers. It’s a tough life.
BUSINESS
Moneycontrol Pro Interview | Keertana Finserv MD Padmaja Reddy points to a crisis brewing in microfinance
Reddy, who previously founded Spandana Sphoorty Financial Ltd warns that borrowers are severely over-leveraged, with more than 50 percent of borrowers having between 6 to 15 loans, with their EMIs far exceeding their household incomes
BUSINESS
What do cash usage data from the past 12 years tell us?
Indians are gradually letting go of cash for transactions, but cash is still king. The Cash Usage Indicator data shows a gradual decline in cash usage, but even then cash remains significant in the lives of Indians.
BUSINESS
Chart of the Day | Here’s how the major source of financing for Indian MSMEs changed, post pandemic
Covid presented one of the biggest challenges to small firms as funding from institutional sources dried up. However, the timely actions by the Government and the RBI by way of funding support and moratoriums on loan repayments helped these firms tide over the crisis.
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
