COMPANIES
Corporate Corridor | Smaller companies bearing the brunt of the slowdown
RBI analysis shows that the manufacturing sector was worse off than the services sector in the June quarter.
ECONOMY
Chart of the Day | Funding to the economy has collapsed
Risk aversion among lenders and lack of demand are the key culprits
ECONOMY
Monetary policy review | A small rate cut belies dovish statement
What’s left unsaid in the monetary policy resolution are the concerns about the fiscal situation.
ECONOMY
Macro Matters | Investment demand continued to be tepid in the September quarter
The sharp cut in corporate tax rates especially for new projects should help propel an investment demand recovery in the December quarter.
COMPANIES
Lakshmi Vilas Bank problems show continued weakness in financial system
To allow the Lakshmi Vilas – Indiabulls housing merger or not? It’s a tough choice for RBI.
ECONOMY
Two charts that show you why the FM is stressing on loan outreach programmes
If there is no shortfall of demand, why hasn’t credit picked up yet?
ECONOMY
PMC Bank crisis begs the question: Are co-operative banks RBI's step children or orphans?
Lax supervision – whether it is RBI’s fault or because it has to jointly supervise cooperative banks with state governments – ultimately ends up hurting depositors.
BUSINESS
Exclusive | Deepak Parekh on corporate tax cut: 'It is a great boon'
In an interaction with Moneycontrol, Deepak Parekh, Chairman, HDFC, spoke about how the corporate tax rate cut could revive investments and market sentiment.
ECONOMY
Shamiana Banking | At what cost, loan growth?
Setting a target of five new customers for every old one is the perfect formula to undermine credit underwriting practices and mess up the balance sheets of banks again just when they are in the final phase of a painful clean-up.
ECONOMY
Disinvestment policy should look beyond current revenue collection
It should not be viewed as selling the family silver but for changing the structure of PSUs and improving their efficiency.
COMPANIES
Is Altico default the canary in a coal mine for real estate NBFCS?
Funding is the oxygen for real estate developers. Starved of liquidity, projects will remain stuck and builders will develop cash flow problems. That will lead to asset quality problems for NBFCs which in turn will exacerbate the crisis.
ECONOMY
External benchmarking of lending rates – right intent but wrong approach
For better transmission, the structural factors should first be resolved. That’s a tough task and prescribing interest rate formulae is the easy way out.
BUSINESS
PSU Bank Mergers | The more things change…
The timing of the merger is questionable. Bank management bandwidth will be occupied by the merger instead of pushing through loans with proper due diligence
ECONOMY
We read the RBI annual report for you. Here are the key takeaways.
RBI says slowdown is cyclical and broad-based in nature. It retains 6.9 percent GDP growth estimate for the current fiscal year.
ECONOMY
Das Capital | RBI rides to the rescue
Will the government use this fiscal space to reduce fiscal deficit or will it boost spending by more than what has been budgeted?
ECONOMY
Sentiment Booster | Are confidence building measures enough to overcome lenders’s risk aversion?
Banks are parking almost a trillion rupees daily at the RBI’s overnight repo window. That shows they have money but are unwilling to lend.
ECONOMY
Monetary policy meeting minutes | Growth overarching focus; more rate cuts in the offing
The quantum of rate cuts is not a given. It depends on not only the incoming data, but also the transmission that has happened so far.
POLICY
From demographic dividend to population explosion: How India squandered its human capital advantage
Population growth cannot be used as a strawman target to cover up policy failures on other fronts such as protecting natural resources and the environment.
ECONOMY
Here’s yet another way to kill Animal Spirits
Investigative agencies should not treat all decision to sanction loans which have gone bad as crimes. Fear psychosis among bankers will kill lending.
MARKETS
Markets | Rupee gets a breather. It is unlikely to last
Tariff concessions seem more aimed at protecting the wallets of US consumers. No real progress has been made in US-China trade talks.
MARKETS
Markets | Don’t pop the champagne corks yet
A slowing economy and the crisis in the NBFC sector are risks.
ECONOMY
There is a limit to how much rate cuts can push growth
Rate cuts and ease of funds flow are at best lubricants, they are not engines of growth. Clearly, it is up to the government to do something to tackle the slowdown now.
ECONOMY
Policy | Asset quality review for NBFCs: If not now, then when?
No amount of liquidity - and rate cuts – will help unless the structural problems in the NBFC sector are resolved
BUSINESS
ECB relaxation makes India more vulnerable on the external front
The government seems to have run out of options to boost economic growth. Its tax revenues are flat in the June quarter leaving little fiscal space to spend more. So it is flogging its one-trick pony of trying to boost credit growth.
