BUSINESS
Chart of the Day | RBI’s pill worked well to cure NBFC exuberance in unsecured loans, show data
The RBI data shows that overall, in line with the banking sector, NBFCs too have decreased the exposure to unsecured loans following the regulatory caution
BUSINESS
Banking Central | How healthy is the work culture in our banks?
Banks need to develop a healthy work culture. A positive work environment is key to attract talent. Bank managements and Boards should take a proactive approach in ensuring a healthy work environment
BUSINESS
Did banks do a good job of passing on RBI rate hikes? Here’s what the data show
The past two years have seen RBI increase repo rates by 250 bps. Data on transmission across bank groups show that increase in lending rates was higher in the case of private banks than among public sector banks. However, in the case of deposits, transmission was higher for PSBs
BUSINESS
What will be the impact on banks if RBI does a Fed?
An RBI rate cut could put near-term stress on banks’ margins but will augur well for asset quality
BUSINESS
Is RBI’s close scrutiny of NBFC books linked to fast growing unsecured personal loans?
There has been strong growth in unsecured personal loan disbursals in the books of NBFCs vis-à-vis banks. These are high-risk loans that could cause problems down the road
BUSINESS
Banking Central | Will RBI close this year with a rate cut?
An expected rate cut by the US Fed later this week and easing of local inflation numbers prepare the ground for a rate cut by December
BUSINESS
Will the regulator have a rethink on the P2P lending industry?
The biggest problem with the P2P players is that time is not on their side for a course correction. Most of these companies are backed by equity investors who aren’t known for their patience.
BUSINESS
More bad news likely for PSBs from potential agri-loan stress
Recent announcements of farm loan waivers and the likelihood of more in the run-up to elections in the next 18 months could trigger the risk of loan waivers for state-owned banks
BUSINESS
Chart of the Day | Are banks betting too much on renewable energy sector too soon?
Bank lending to renewable energy has galloped in the last two years. There are clear upside risks to this exposure that needs to be closely watched
BUSINESS
Why are young bankers leaving the profession so soon?
Targets are given to bank employees to sell insurance products along with core banking products. Mounting pressure can create havoc as it leads to misselling or forced selling of products
BUSINESS
Banking Central | When times are good, be cautious. Hard days could be looming close
Good times are typiclly followed by tough cycles. Banks had seen a spike in bad loans following the credit boom in the early part of last decade following the global crisis when careless lending crept in.
BUSINESS
Banks are left nearly bald after IBC haircuts; what's the cure?
The recovery track record of banks in the insolvency process has been poor. Losses incurred in corporate lending imply big sacrifices made by shareholders.
BUSINESS
For India’s big banks, small is not beautiful in the NBFC lending market
Data shows banks are now very selective in funding NBFCs; only top-rated NBFCs get loans at relatively lower rates. Borrowers rated AA and below are struggling to access bank credit
BUSINESS
Banking Central | As banks speed up on credit, RBI shifts to lower gear. For a good reason, though
Recent regulatory actions could force banks moderate credit growth this fiscal year. That will help moderate the CD ratio but for banks. But this will come at a cost
BUSINESS
Are Indian MFIs pushing too much credit to the borrower?
There are signs of overheating in some pockets of the industry, signalling build-up of potential stress. It is time for the industry to recall the lessons of the 2010 crisis and do a course correction
BUSINESS
Shifting goal posts on inflation targeting will be unfair to India's poor households
For the average Indian, inflation essentially means prices of most consumed food and vegetable items.
BUSINESS
ULI can make the credit process quicker; the tricky part is recovery
Technology platforms, as envisaged by the RBI, can smoothen the credit process and cut time delays. The difficult part is recovering the small loans
BUSINESS
Banking Central | A tough balancing act awaits rate-setters as MPC nears a reshuffle
Although India continued to grow at the fastest rate among its peer economies, there are certain pockets of deep worry. One of the foremost is the issue of rising unemployment
BUSINESS
On real rate debate, the gloves are off in the near-expiry MPC
As both Varma and Goyal argued, holding interest rates too high for too long can hurt economic growth. But Das and Patra warn that lowering the guard on inflation too early too can be a mistake.
BUSINESS
Interview | MPC member Jayanth Varma warns high real interest rates can depress private investment, suppress demand
Varma has been cautioning that keeping interest rates too high for too long can hamper growth
BUSINESS
Moneycontrol Pro Panorama | Fed is hinting at a September rate cut; will Mint Road blink?
In Moneycontrol Pro Panorama's August 22 edition: Kolkata horror warrants a relook at women's safety in workplace, all bank depositors should get full insurance cover, decoding the core inflation pattern, will rollback of lateral entry ensure a win for social justice, and more
BUSINESS
Chart of the Day | What does the core inflation pattern tell us?
The consistent decline in core inflation in the last one and a half years amid the strong growth momentum is bit unusual and may correct going ahead.
BUSINESS
Not only senior citizens, but all bank depositors have the right to full insurance cover
Rising bank failures, especially among the coop banks, have created a trust deficit among depositors. Increasing the insurance cover can help partly address the problem
BUSINESS
Can banks hit the jackpot as private capex heads for Goldilocks zone in FY25?
An article by RBI staff published in the August bulletin projects a significant pick-up in private investments in 2024-25 backed by rising demand and cleaner books of companies, banks. Will banks benefit from this growth?
