Wednesday, February 13th, 2019
The RBI recently released its Report on Trend and Progress of Banking in India 2017-18. In the report they have a whole section dedicated to developments in cooperative banking. Cooperative banks play a significant role in boosting financial inclusion because they provide credit to the unbanked segments of society. I found some of the data […]
Thursday, October 18th, 2018
How does a balance of payment problem affect demand in the economy? Neelkanth Mishra of Credit Suisse puts it in an elegant way in an interview with Ira Dugal. To paraphrase, if you think of it like a household budget: suppose a family has a consumption expenditure of Rs. 120 and an income of Rs. […]
Wednesday, August 29th, 2018
The NPA problems have been brewing for a number of years. Along the way the RBI and the government have tried various schemes for banks to find a resolution to bad assets. Each of these schemes had fancy acronyms, such as CDR, SDR, S4A, JLF etc., which were wound up because they did not have […]
Monday, August 27th, 2018
There has been a lot of buzz about the potential for financials in India and investors have been willing to pay a huge premium for well managed private financial institutions. Taking note of this, there has been a rush for such companies to list on the bourses. Already a number of NBFCs, insurers and asset […]
Wednesday, August 8th, 2018
Nice piece by Vivek Kaul in the Mint paper on how Indian banks are changing the focus of their business. It talks about how, without any regulatory push, Indian banks are increasingly moving toward narrow banking with a focus on the retail segment. This is of course a direct result of the NPA mess that […]