BUSINESS
A one-time restructuring plan is welcome
RBI seems to have learnt from the lessons of the past, sets tighter boundaries for recast scheme
BUSINESS
A tough call for MPC in its last meeting
Can the MPC afford to see through this spike in inflation because demand is poor and inflation will eventually trend down?
BUSINESS
Stressing about bank capital
Macroeconomic shocks could lead to capital levels falling below 7 percent for multiple banks
BUSINESS
RBI Financial Stability Report: Notes for investors
Only when the pandemic runs its course and various loan moratoria or restructurings end, can we get a true picture of bank books
BUSINESS
Review | Urjit Patel book no tell-all; it is strictly for students of Indian economy and banking
The former governor of the RBI minces no words in describing the bad loan mess in government-owned banks. He does not spare any stakeholder, and rightly so
BUSINESS
Should India use forex reserves to recapitalise banks or fund infrastructure?
It is better to save forex reserves for a rainy day as the pandemic poses a huge unknown
BUSINESS
Why the government should listen to Raghuram Rajan
Former RBI governor predicts that bank NPAs will rise to unprecedented levels.
BUSINESS
Das Kapital| RBI governor wants banks to improve buffers, but where will the money come from?
Meeting the minimum capital requirement is necessary, but not a sufficient condition for financial stability, said Das
BUSINESS
Deepak Parekh, KV Kamath too join chorus for a one-time loan recast. Should RBI listen?
Moral hazard is the biggest problem with loan restructuring schemes. But extraordinary times call for extraordinary measures
BUSINESS
Why the ebullience of KV Kamath is justified
It’s true that the Indian economy is indeed recovering fast, but other factors need to click for this recovery to be sustainable
BUSINESS
The risks of trading like Robinhood
These fresh retail investments will likely turn tail even when slightly spooked, thus adding more volatility to the market
BUSINESS
Credit raters seeking to withdraw ratings yet another red flag for impending NPA surge
Banks may have to set aside more capital for these loans because loans that are unrated or sub-investment grade carry higher risk weights
SECTOR
Seasonal loan contraction lower this year compared to the last
Data seem to indicate that firms, especially large companies, seem to be drawing up to their limits and not repaying, thanks to the moratorium
BUSINESS
Darkness refuses to lift around Indian power sector
More than a liquidity lifeline is needed now
BUSINESS
Bringing cooperative banks under RBI supervision is a good move, but it is not enough
Government should introduce bankruptcy law for financial corporations and the central bank should beef up supervisory capability
BUSINESS
Yes Bank interest default a warning on what rising NPAs could do
The expected sharp rise in NPAs brings two inter-linked issues to the fore. One is the need to augment bank capital. Second, we need to conclusively address the bad loan issue so that lending gains traction and supports the economic recovery.
BUSINESS
How long will the rise in fuel prices continue?
BUSINESS
The thorny issue of bank ownership
Bearing down on boards and separating ownership and management is fine, but RBI has to strengthen its own supervision capabilities.
BUSINESS
Needed: A credit backstop for investment-grade NBFCs
Liquidity measures have had their day. They haven’t helped lower-rated companies
BUSINESS
Big industry borrowed more during the first month of lockdown, RBI data show
Salary cuts and layoffs seem to have affected consumption and personal loans.
ECONOMY
RBI does what it can. But will it be enough?
The central bank needs more support from the government
ECONOMY
The sore point with the MSME credit guarantee scheme
Borrowers who don’t have access to formal finance will be left high and dry.
BUSINESS
Big bang reforms paint vision of a prosperous India, but how will we reach there?
In the immediate term, the package does little to boost demand, is inadequate although it adds up to a notional 10 percent of GDP, and leans too heavily on a spluttering financial system.
MARKETS
A 1991 moment for agriculture
Key reforms will free farmers from the clutches of middlemen and trader cartels, open new channels and foster investments and competition in the agri supply chain.
