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?
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.
