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.
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.
