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?
BUSINESS
Banking Central | Are banks going overboard in lending to commercial real estate?
Commercial real estate loans are attractive bets for banks but can turn risky in a downturn when vacancies soar
BUSINESS
Indian P2P players should learn from Chinese debacle, RBI has just pressed a warning button
Typically, the banking regulator issues mild warnings to the industry before actual clampdown. P2P lenders need to read the signals now
BUSINESS
Last mile of disinflation is an unfinished job for near expiry MPC
While the MPC has managed to bring inflation within the 6% upper band, comfortably landing at the 4% medium-target remains a work in progress
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
Banking Central | Will banks follow up with deposit rate hikes?
Even though banks have been struggling to raise deposits, data suggests that the deposit accretion has improved in the recent months
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
Banking Central | Dear depositor, think twice before you bite the ‘double your money’ bait
Often, individuals or institutions promising too-good-to-be-true returns lure investors into a deadly trap. Always look at promises of unrealistic returns with caution.
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
Banking Central | RBI’s proposed norms on LCR could be a dampener for some banks
The RBI seems to be a bit worried that in the new era of fast-paced technology (mobile, internet banking), customers can withdraw massive amount of deposits at a click
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
