ECONOMY
Power sector stress spreads to new areas
Mounting discom dues threatens to add NPAs in power sector, especially in renewables. In the coal-based sector, only 5.9 GW of the 41GW capacity that is stressed has achieved resolution.
ECONOMY
Higher slippages in banks show end of NPA cycle is not in sight
Unless growth picks up and credit conditions improve, the risks to bank balance sheets will linger
ECONOMY
No rate cut, but a whole lot to boost sentiments
The monetary policy panel didn’t cut rates because it is very concerned about the inflation hydra
MARKETS
The glaring inconsistency between deteriorating credit conditions and equity market highs
For the nine months ended December 2019, there were 183 downgrades for every 100 upgrades. The downgrade to upgrade ratio was only 0.96 for FY19.
ECONOMY
What to expect from the RBI MPC meet tomorrow
RBI will hold rates and retain accommodative stance
BUDGET
No steps to boost credit flow in the Budget
There is not much for the NBFC and real estate sectors
ECONOMY
Survey suggests way to fix PSBs, but stops short of calling for privatisation
The Survey offers no solutions to what should be done with the pile of toxic assets that PSBs are currently carrying, or how to unclog the credit pipeline so that growth can take off quickly.
BUSINESS
Kotak promoter stake – different strokes for different folks?
This compromise shows RBI in poor light
MARKETS
List LIC so that it doesn’t go the way of Unit Trust of India
Government should stop treating the insurance corporation as a war chest
BUDGET
Budget 2020 Chart Point | Why private sector capex needs to pick up
Government capex as a percentage of nominal GDP hasn't moved the needle much.
BUDGET
Budget 2020 Chart Point | The relationship between nominal GDP growth and gross tax revenues
The relationship is not always straightforward.
ECONOMY
Davos participants should walk the talk
The World Economic Forum will throw up a lot of good ideas, but they have to be followed through.
MARKETS
What to expect from third quarter results
Earnings growth without a growth in sales or volumes tends to run out of steam quickly. Thus, the key things to monitor would be is the growth in sales and volumes better than Q2 and what managements are guiding for the next few quarters.
ECONOMY
High retail inflation: RBI must not increase target band and add fuel to fire
Policy flip-flops should be avoided. The new framework should be given time.
BUSINESS
Oil prices on a knife-edge. Which way will they turn?
It boils down to a question of how much supply is disrupted in the Middle East (which accounts for about a third of the world’s crude oil production), how long will the disruptions last and whether this disruption can be offset by other sources
ECONOMY
Two interesting insights from RBI’s financial stability report
Just like the market rally, the insipid credit growth in the commercial sector is being fuelled by a few firms.
ECONOMY
Why did the monetary policy doves stop cooing?
MPC minutes show concerns on rising inflation expectations, fiscal slippage
BUSINESS
SBI’s bad loan under-reporting shows balance sheets still can’t be trusted
Investors seem to think that the worst is behind banks when it comes to stressed loans recognition. But that is more hope than reality
BUSINESS
OPEC production cuts: Should India worry?
These production cuts provide a floor to oil prices. Oil market is still tilted towards oversupply owing to rising US production, weak global economic growth and sluggish demand
ECONOMY
RBI pause highlights impotence of monetary policy in current situation
RBI should find ways to tackle the trust deficit in the banking system while the government should put more money into the hands of the people. That’s the way out of the economic slowdown.
ECONOMY
RBI will cut rates this week. But how much will it help?
Transmission will get stuck as market thinks that further rate cuts won’t be forthcoming. Fiscal slippages will add to pressures too.
ECONOMY
The dangers of directed banking
Directed lending will ultimately lead to a NPA pile-up and demands for forbearance. The taxpayer will end up footing the bill.
ECONOMY
Bank Frauds | Whose fault is it anyway?
What’s needed is a proper incentive structure for PSU banks and bankers.
POLICY
DHFL insolvency a test (and very difficult) case for the IBC
Credibility of DHFL balance sheet, allegations of fund diversion, ED investigation and litigations could make the case murkier.
