BUSINESS
The financial sector doesn’t fit the Budget 2023 jigsaw
While the government is making enabling amendments to sell loss-making banks and is, thus, not providing any fresh recapitalisation funds, it is oddly not accounting for their sale in its receipt budget
BUSINESS
Budget 2023: The key to increasing the capex multiplier lies within outliers
With so much headroom on capacity utilisation available and myriad uncertainties looming ahead, it is natural for boardrooms to be circumspect about committing fresh investments
BUSINESS
Budget 2023 faces three challenges in marshalling banks to catalyse growth
The FM is expected to keep the capex tap turned on this year in the Union Budget 2023 and banks will be asked to step up their financing of infrastructure and other term loans
BUSINESS
Banks: It’s not going to be smooth sailing for everyone in 2023
The New Year promises a high interest rate and inflation combo, within the overlay of a likely economic slowdown
BUSINESS
Has demonetisation brought RBI and the government closer?
The RBI has a tradition of taking independent and often critical views of policies. But on demonetisation, it has not delved deep into whether it succeeded in its main objectives
BUSINESS
The link between return to old pension system and slowdown in bank deposit growth
Retirees have been in financial distress, thanks to the low rates of interest on bank deposits; hence the demand for a return to defined benefit pensions
BUSINESS
RBI report highlights the glaring gaps in municipal financing in India
Most states use Urban Local Bodies for achieving various political objectives, which includes extending state patronage
BUSINESS
RBI should be answerable to Parliament, not the government
Target breaches by central banks in most countries result in either parliamentary hearings or open letters to the public, or a combination of both
BUSINESS
India launches an experiment with digital banking
The Digital Banking Unit model is expected to facilitate operations for both digital-familiar as well as digital-averse bank customers
BUSINESS
Credit growth brings cheer but deposits are not playing ball
Low interest rates mean deposits have lost their attraction. Savers prefer cash and mutual funds. Where will banks find money to fund rising credit growth then?
BUSINESS
RBI's and FinMin's economy review reports are littered with contradictions
There seems to be a compulsion in both RBI's and FinMin’s reports to apotheosize economic developments, at odds with the risks mentioned
BUSINESS
Inclusion in global bond indices is job half done
There is an urgent need to develop the corporate bond market along with the government bond market
BUSINESS
NPAs, the dragon that refuses to be vanquished
There is no dearth of measures being taken to snuff out the problem of non-performing assets but data shows how difficult the task is. It may be premature to declare victory
POLITICS
Abolishing the freebie culture won’t re-ignite the economy
The criticism of freebies has come a couple of months after the government increased the subsidy for fertilisers and cooking gas cylinders in May
BUSINESS
India must stop blowing hot and cold on crypto regulation
The finance minister has said any action against cryptos has to be part of a globally coordinated move. While such a move is afoot in G20, it might not translate into any concrete action
BUSINESS
RBI’s rope trick will likely see a redux
RBI’s strategy to protect the rupee’s currency value is based on attracting NRI deposits. That is not going to be easy
BUSINESS
RBI must craft new regulatory regime as tech redefines monetary system
The central bank's Payments Vision 2025 has two issues that need to be resolved for it to be successful
BUSINESS
One interest rate segment stubbornly defies all RBI inducements
The weighted average lending rate charged by the banking industry as issuers of credit cards, as calculated by RBI, is currently 30.51% on an annualised basis when you roll over your credit card dues to the next month. It is currently the highest rate charged in the formal economy.
BUSINESS
RBI's capacity in the cross-hairs as central banks globally are caught napping
An honest discussion might be required about the relevance of a flexible inflation targeting (FIT) framework in the current, rapidly evolving economic landscape
BUSINESS
Digital finance scores self-goal, ends up under regulator's heavy hand
The digital platform’s source of funds, is primarily equity and debt, and not deposits. This injects an element of volatility into the funds supply chain, making it more procyclical and vulnerable to business cycle downturns
BUSINESS
NBFC sector up for a churn, but PSUs will get a free pass
Government-owned NBFCs, much like the teacher’s pet students, will be afforded favoured treatment over private NBFCs
BUSINESS
HDFC’s merger will light up action in the Indian financial services sector
After the HDFC-HDFC bank merger, the options available to most banks and NBFCs are: either a merger or sale of select assets with a sharpened focus on only a few lines of business
BUSINESS
Mettle of three exchanges, separated by two wars and 30 years
What connects today’s nickel crisis at the LME to that of the BSE 30 years ago?
BUSINESS
The bad bank is a placebo; it will work with only limited efficacy
The NARCL strategy resembles trying to use a band-aid to staunch a deep flesh wound; it may work for only a short period and is, at best, a sub-optimal locum for the actual procedure
