BUSINESS
Frontloaded rate cut and CRR cut to push banks to lend
Constraints in deposit mobilization and high cost of retail deposits, and a fear of downward re-pricing of the fresh loans upon rate cuts in future weighed upon the lending decisions of the banks. With a 50-bps cut in the repo rate to 5.5%, a 100-bps cut in CRR to 3.0% and a change in stance to Neutral, the MPC has tried to address both the issues
BUSINESS
Will the overlap on assets sides between banks and NBCFs lead to regulatory convergence?
Increasing interlinkages between banks and the NBFCs is one of the many considerations for RBI to start harmonising regulations for them. Alignment on the asset side, governance and risk management practices cannot be ruled out
BUSINESS
Budgeting for the future, while maintaining fiscal prudence
This year's Union Budget focused on the growth of the informal sector; from skill enhancement for youth, credit flow to MSMEs, to income enhancement measures for the rural sector. Here's what the budget had to offer the financial sector
BUSINESS
Well-run SFBs can look to shed the 'small' tag
While only one small finance bank meets all the criteria for conversion to universal bank in FY25, others may become eligible by FY26
BUSINESS
Finance Sector and Budget: A season of stark contrasts for banks and corporate bonds
Banks will struggle with slower credit growth while corporate bonds are set to become more attractive
BUSINESS
Tech, easy access to borrower data fuelling rise in NBFCs’ unsecured loans
The borrower-focused approach of NBFCs vis-à-vis their product-focused approach in the past has contributed to a jump in unsecured credit
