BUSINESS
100-word take | A slow capex recovery has taken root
Improved capacity utilisation…provides a lead indication of a “reinvigoration of investment activity,” says RBI staff paper.
INDIA
Opinion | Indian stocks are just playing catch up, Modi’s return irrelevant to markets after elections
Things haven’t changed much fundamentally on the ground. Indian indices still trade at 18 times one-year ahead earnings – marginally higher than at beginning of the year – although the valuation premium with respect to other markets has come down.
BUSINESS
Opinion | Deferring Ind-As for banks is no solution
Transition to the new norms will be yet another step in the overhaul of the credit culture, especially at state-owned banks. It should be viewed as part of the larger efforts of RBI to improve governance and prevent another massive pile up of soured loans.
BUSINESS
100-word take | The one chart that shows distress among developers
Around 15-20 percent of developer debt, amounting to at least $10 billion (Rs 70,000 crore) is at the risk of turning sour.
ECONOMY
Comment | Public sector bank reforms: Baby steps taken, a long way to go
It is a reflection of the sad state of affairs in Indian public sector banking that the government/external agencies have to hand hold lenders to ensure that basic hygiene is followed when extending loans.
BUSINESS
Comment | Private sector bank CEO pay: RBI steps in to do board’s job
The proposed norms will help improve governance in private sector banks. Reforming boards and holding them more accountable should be the next step.
INDIA
Comment | Credit policy meeting minutes show April rate cut is not a given
It appears that those members who voted for a rate cut have factored in all the positives about inflation. The focus has definitely shifted to growth, but alarm bells aren’t ringing yet.
INDIA
Comment | Discom defaults: who will bell the cat?
While it is easy to blame discoms, remember that they are also under political pressure to not increase tariffs and turn a blind eye towards theft etc
BUSINESS
Opinion | In the Yes Bank drama, RBI has shot itself in the foot
The central bank should embrace more transparency, with better explanations for regulatory actions.
BUSINESS
Comment | A light at the end of the tunnel for Jet
For a sustainable turnaround, not only is fresh capital needed, but also fresh thinking
BUSINESS
Comment | Tata Motors runs headlong into the Great Wall of China
Brexit, US tariffs, investments in future technologies, excess capacity and high cost structure are taking their toll on JLR.
BUSINESS
Comment | What’s the hurry with a rate cut?
Fiscal profligacy will surely come to bite if not in the run-up to elections, then certainly after a new government is sworn in.
BUSINESS
Franklin Templeton India Crisis: Comment | Debt mutual funds should learn from the past
If an entrepreneur runs a highly successful business, it doesn't necessarily follow that she will do equally well in a completely unrelated industry.
EARNINGS
Opinion | Is the lifting of PCA curbs on three banks premature?
There are risks looming in the form of delayed loan recovery and power sector defaults
INDIA
Opinion | Say bye bye to lower interest rates for now
This fiscal math is clearly shaky and it will have a market impact through increased government borrowings.
INDIA
Comment | What you should look out for in Budget 2019
The government is likely to address rural distress. Some are also talking about poverty alleviation schemes which could even include Universal Basic Income.
CURRENT-AFFAIRS-TRENDS
Opinion | Kochhar indictment a wake-up call for boards and victory for whistleblowers
The board failed in its duty by giving Kochhar a clean chit. Sitting fees and perks of members should be clawed back as well.
BUSINESS
Opinion | Essar Steel: Bankruptcy delayed is resolution denied
Many cases are embroiled in endless litigation and there isn’t enough institutional infrastructure to deal with this deluge. It's up to the government to boost institutional capacity and support the courts
BUSINESS
100-word take | Some tailwind for Jet Airways, but will it be enough?
A fresh equity injection and restructuring of debt is a necessary condition for Jet to continue flying. But it is not sufficient.
BUSINESS
Opinion | CBI FIR in Chanda Kochhar case raises more questions than it answers
The law will take its own course. But the board of ICICI, the government, RBI and CBI have a lot to answer for.
BUSINESS
Quick Take | SEBI’s snub to L&T buyback has its roots in IL&FS debacle
Consolidated numbers present a truer picture of a company’s financial strength and its liabilities. By considering consolidated numbers, SEBI has in a way nudged companies towards more disclosure, which will ultimately lead to better governance as well.
BUSINESS
Quick Take | Time is money. SBI's sale of Essar loans shows IBC has not learnt this lesson
A quick resolution is one of the key promises of the bankruptcy code. But that hasn’t happened in several high profile cases which are stuck in litigation.
BUSINESS
100-word Take | Time's running out for Jet Airways
Naresh Goyal has no option but to agree to cede majority control to woo the likes of Etihad.
INDIA
Quick Take | Off-budget financing: There's no such thing as a free lunch
Presenting a true picture of finances will also force the government to not stray off the path of fiscal prudence.
