BUSINESS
Banking Central | Das’ message to banks: In good times, we prepare for the bad
This isn’t the first time RBI governor Shaktikanta Das has asked banks to build an additional capital buffer and tighten risk assessment. Last time, it was during the peak of the coronavirus pandemic
BUSINESS
Why a sharp spike in KCC loans is a ticking timebomb for Indian banks
Kisan Credit Card loans have been a source of pain for state-run banks in the past on account of high default rates and the repeated loan waivers announced by politicians. A big jump in the quantum of such loans ahead of an election year may be bad news for banks.
BUSINESS
Banking Central | Two private lenders make the field for bulls in banking space
ICICI Bank numbers add to the optimism in the sector while RBI clarifications offer much needed clarity to HDFC Bank’s investors.
BUSINESS
HDFC-HDFC Bank merger: Why RBI clarification comes as a relief for the banking giant
More time to comply with PSL requirements takes away the immediate burden from the bank. Similarly, clarity on holdings in investments and subsidiaries will clear air for investors.
BUSINESS
Decoding MPC minutes: No one backs out from inflation fight. Then why a pause?
Minutes show inflation worries dominated the deliberations, yet the panel decided to pause. It is not clear why
BUSINESS
Banking Central | CPI inflation at 5.7% in March guarantees a pause in June but watch out for crude
If inflation doesn’t surprise on the upside and stays below 6 percent, the MPC could stay in the pause mode for the rest of the year, with even the possibility of a rate cut by end of the year
BUSINESS
Banking Central: Will RBI’s Monetary Policy Committee regret its early pause?
The assumption is that inflation will start easing in the period ahead. But what if it stays elevated? That would put the panel in an embarrassing position because of the early pause. Remember, crude is inching up following surprise production cuts by major producers and there is an El Nino threat over the monsoon
BUSINESS
Quick view | Dear RBI governor, why the reluctant pause now?
Overall, the tone suggests that the central bank is still cautious as far as inflation is concerned and doesn't want to signal to the market that the rate hikes are over. So, if inflation continues to surprise on the upside, a rate hike can't be ruled out this year
BUSINESS
RBI Policy: Surprise pause by MPC, repo rate kept unchanged at 6.5%
The central bank has hiked the repo rate by 250 basis points since May last year to contain inflationary pressure.
BUSINESS
Banking Central | What will be the MPC’s decision on rates?
That the MPC will go for another 25bps rate hike on April 6 is a given assumption considering the still high retail inflation.
BUSINESS
Exclusive| ‘No differences with the board’, clarifies South Indian Bank MD Murali Ramakrishnan on decision to not seek re-appointment
Shares of the bank had fallen sharply on 29 March post the bank’s communication to stock exchanges. At the time of filing this copy, the shares were trading at Rs 14.25 apiece, down 13.9 per cent from the previous close.
BUSINESS
Banking Central | Who wouldn’t love a bigger deposit insurance cover
Banks are dealing with public money and depositors deserve a safety net in the event of bank collapses. The higher cost of deposit insurance can be borne by the depositor instead of banks footing the bill alone
BUSINESS
View| Credit Suisse fiasco shows the ugly side of AT1 bonds
Why do people invest in AT1 bonds despite the high-risk nature? One reason is that the returns offered by these bonds are typically higher compared with other bonds. The other is ignorance.
BANKS
Banking Central | Why Uday Kotak was spot on in warning on Credit Suisse
There are important lessons for Indian banks on risk management and concentration risk from the unfolding global banking crisis
BUSINESS
Bank failures: Is there a case for higher deposit insurance cover in India?
Bank failures in US highlights the need for a higher deposit insurance cover to bridge the widening trust deficit of the customers, particularly in small banks.
BUSINESS
Does RBI have a case for pause in April?
A section of economists and Monetary Policy Committee members believe that it’s time the rate-setting panel take a hard pause and waits for the results of the past rate hikes to play out. Others think it is too early.
BUSINESS
Banking Central: Why an SVB-like crisis is unlikely in India
According to the RBI Financial Stability Report (FSR) released in December, stress test results indicate that banks would be able to withstand even severe stress conditions should they materialise.
BUSINESS
All in a name: SVB ripples from California reaches Mumbai to rattle a coop bank
The similarity in the brand names caused confusion among the customers of Mumbai-based SVC cooperative bank, which was flooded with enquiries from customers on the safety of their deposits.
BUSINESS
MC Exclusive | HDFC-HDFC Bank merger to lead to bigger growth opportunity; will not take executive role, says Keki Mistry
HDFC on April 4 said its board has approved the merger of its wholly-owned subsidiaries HDFC Investments Limited and HDFC Holdings Limited with HDFC Bank Limited. As part of the plan, HDFC will acquire 41 percent stake in HDFC Bank through the transformational merger.
BUSINESS
Banking Central | Dear bank customer, think again lest you hit that link
Rising cases of online frauds, phishing attacks pose important questions on the cyber security in banking channels.
BUSINESS
Banking Central | How costly are the ‘haircuts’ for bankers in IBC?
Even with lower recoveries, IBC remains banks’ best bet at this point when it comes to resolution of problematic corporate loans
BUSINESS
Jayanth Varma Exclusive Interview | Dissent is healthy; I approach MPC deliberations with a great deal of humility
India’s central bank increased the repo rate by 25 basis points to 6.50 percent earlier in February to fight persistent higher inflation. This was the sixth straight hike in 10 months.
BUSINESS
Rising from the ashes: The fall of Trident and rise of Pradakshana
Trident Microfinance, the only major MFI that had to shut shop following the 2010 microfinance crisis in Andhra Pradesh, is quietly back in business in a new avatar and with a new business model. Trident’s founder Kishore Kumar Puli isn’t willing to give up on his dream
BUSINESS
MPC minutes show the house is still divided
Much of the rate hikes may have come to an end already. While rate cuts are clearly off the table this year, the panel may enter into a phase of prolonged pause soon. Question is how soon.
