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
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
