BUSINESS
Indian banking’s held back by inadequacy of long-term funding
RBI has eased short-term liquidity pressures through various tools, but these are no substitute for the stable, long-term funding banks need to support credit growth. The core issue is long-term availability of stable funding—mainly through deposits or long-term bond issuance. India’s banking system is in a delicate balance—supported by liquidity interventions but hindered by long-term funding gaps
BUSINESS
Eight wishes for Indian banking in 2025
Both economic and geopolitical contexts have deteriorated since the beginning of the previous year. After a robust performance in FY24, banks have begun experiencing challenges. In this backdrop, here’s a wish list to navigate a challenging year safely
BUSINESS
A Kafkaesque tale of Indian consumer banking
After discovering a shocking drop in his credit score, the author faces a frustrating battle against a mysterious fraudulent account. Despite efforts to rectify the situation, he finds himself trapped in an unresponsive system, highlighting the challenges many consumers face in India
BUSINESS
Here’s how to bypass the hurdle of credit-deposit growth mismatch
Indian banks have experienced significant credit growth in the post-pandemic years, but weak deposit growth threatens to undermine this progress. Permitting banks to issue bonds could address the challenge of sluggish deposit growth
BUSINESS
Banks face challenges in making ECL-based provisioning work
The information needed to make ECL provisions has characteristics akin to a public good. While procuring and aggregating them may entail private costs, the communal benefits from their dissemination are substantial
BUSINESS
Why investors were lukewarm to SBI’s July AT-1 bond issuance
The underwhelming performance of SBI’s AT1 bond issue is perhaps indicative of the new normal for subordinated bonds issued by banks and financial institutions. Banks may have to significantly increase the premium offered on these bonds, given the uncertainties associated with the loss absorption hierarchies
BUSINESS
Stagnant household bank deposits cast shadow on credit growth
BUSINESS
Aligning With The Target: Is RBI signalling a change in its inflation targeting strategy?
BUSINESS
Is the good run of the Indian banking sector over?
BUSINESS
A flat yield curve does not bode well for bank margins
BUSINESS
SVB crisis has brought the trade-off between price stability and financial stability back into focus
BUSINESS
Banking | Will 2023 be as good as 2022?
BUSINESS
Buy Now Pay Later | RBI’s timely move will check explosive growth of unsecured credit
BUSINESS
Banking | Coming Soon: The battle for deposits
BUSINESS
A wish-list for the Indian banking sector in 2022
INDIA
Liquidity Management | The difficult art of smooth landing
BUSINESS
More banking does not need more banks
BUSINESS
Why banks are buying more bonds
