BUSINESS
RBI’s outlook spells tough year for Indian banks
As the new financial year dawns, the Reserve Bank of India’s latest policy signals a year of recalibration for the banking sector. Underneath the surface of regulatory adjustments and rate movements, deeper structural challenges are beginning to emerge—ones that could reshape how Indian banks operate and compete in the year ahead
BUSINESS
RBI pivots from inflation fighter to growth enabler
With GDP growth projections revised down and global volatility rising, the central bank is doubling down on liquidity and rate cuts to cushion the economy. The big question now: will lenders—and borrowers—respond?
BUSINESS
Governor Malhotra disregards global political climate, displays his green credentials
Safeguarding the financial system from climate change impact remains high on RBI’s to-do list
BUSINESS
RBI Governor Malhotra is the new Sheriff in town
On the policy front, benchmark rates were lowered. He has relaxed many regulatory strictures, especially those that intensified risk mitigation and increased the cost of lending for regulated entities. What next is the question
BUSINESS
Economic Survey reveals some risks in the financial system, but glosses over many others
The nation’s growth path should be calibrated in line with its investments needs, the savings in the economy and the level of financial literacy in society. This is important because investments in excess of the economy’s savings levels and ability to service foreign exchange inflows can lead to higher interest rates and inflationary impulses
BUSINESS
Budget, Economic Survey again bat for greater control over regulators
Oversight of regulatory institutions has not been bipartisan but controlled by the ruling administration
BUSINESS
A three-cornered Budget thrust likely to leave RBI cleaning up the mess
The government wants banks to push more credit to underserved segments, but that would mean the RBI’s work on delinquencies becomes challenging
BUSINESS
RBI’s financial stability review spots two risks from Trump 2.0
BUSINESS
The curious case of West Bengal in the national data sets
West Bengal is perhaps shifting from attracting big firms to facilitating growth of small businesses
BUSINESS
RBI policy has an unintended consequence (arbitrage) -- and an intended one (boosting bank margins)
The two measures announced in the credit policy, one on foreign currency deposits and another on cutting the CRR are measures taken from an old playbook when faced with similar situations
BUSINESS
There’s a storm coming for the banking industry
Three big sets of draft rules are up in the air for a banking system stymied by low deposits
BUSINESS
It’s a tough job being part of the MPC these days
India’s MPC has more than enough to ponder in December, beyond a new President in the US
BUSINESS
Microfinance feels the regulatory axe, but RBI needs to examine the blade's sharpness
The RBI’s directive leaves many unanswered questions and begs for some explanatory notes. It also points to a wrinkle in the central bank’s self-regulatory regime being rolled out
BUSINESS
Small finance banks stare at rising NPAs and shrinking margins
RBI should review some of the operational guidelines for SFBs to pre-empt the risk of systemic instability in the financial sector
BANKING
Assets and risks grow apace in the NBFC space
India’s shadow banks have grown in might and importance, but regulation needs refinement
BUSINESS
ULI adds new dimension to a credit market that's in flux
Size has been determining where industrial borrowers turn to for funds, with large borrowers showing a preference for non-banks, while MSMEs rely on banks. Could ULI's entry disrupt the market further?
BUSINESS
Gaps in climate finance framework may provide access to new breed of predators
Climate-related finance risks are making their presence felt even as they are relatively new and unquantifiable. Regulators are alert to the risks but the steps taken so far don't go far enough
BUSINESS
Why India's bank credit to GDP ratio is low when there's no shortage of banks
Despite having close to 2000 banks, the ratio is only at 58 percent for India, even as countries with fewer banks boast of a higher number
BUSINESS
Digital risks imperil banking even as technology makes it convenient to bank
Blindly following digitalisation to cut costs would imperil banking
BUSINESS
Financial Fault Lines: The villain is the same, but the movies are different
Retail loans are turning into a worry. While the RBI’s repeated warnings to banks over their retail lending spree has helped slow growth somewhat, it is still considered high. The same applies to even the non-banking sector
BUSINESS
RBI’s Das points to storm clouds over microfinance
Select states have shown an increase in borrower indebtedness and potential risks to micro lenders who have extended credit to households
BUSINESS
The power of the narrative has pollsters, equity researchers in its thrall
Output from two constituents—pollsters and equity researchers—show how a powerful narrative can result in a willing suspension of disbelief
BUSINESS
FPI stampede from financial sector stocks points to looming risks
Foreign portfolio investors are heading to the exit when it comes to stocks in the financial services sector. But there are two sources of worry for the sector that could also explain why investors have turned skittish
BUSINESS
RBI tightens screws left loose by lenders in infra projects
The draft guidelines to reduce risks in project finance seem to indicate some risk build-up in the financial sector while it also attempts to address complaints about an unequal playing field
