Operation Twist hasn’t quite produced expected outcomes but will RBI’s latest attempt buck previous trend?
A successful ‘Operation Twist’ could mitigate that additional need. Past experience, however, shows that success can be a mixed blessing.
Why Union Budget 2020 is an opportunity for govt to demonstrate its intent to rebuild economic policy credibility
Union Budget documents show that from FY17 to FY20, capital expenditure allocation went up by 18 percent over four years; revenue expenditure went up by 45 percent in that same period: nearly 2.5 times more
Nirmala Sitharaman’s Budget is high on ambition but low on details; how will the big numbers be achieved?
Echoing Prime Minister Narendra Modi, Sitharaman said in her Budget speech that India would be a $5-trillion economy in 5 years.
RBI forex swap auction: Central bank's move will help boost FPI inflows, but will it impact long-term liquidity?
In October 2018, the RBI and the Securities Exchange Board of India (SEBI) proposed the Voluntary Retention Route (VRR) for foreign portfolio investors
Narendra Modi govt is mixing up its fiscal arithmetic; consequences may not be pleasant five years from now
The purpose of government spending is about providing finance for those areas that only the government can provide, and not leave them at the mercy of the market.
NPA issue: Will RBI's 12 February circular help expedite bad loan recovery? Signs indicate it is on right path
This smorgasbord of schemes didn’t even dent the NPA problem. The mountain just kept piling up until it reached 11 percent of total bank assets.
RBI-govt spat: Uneasy calm prevails as both sides seek to cool down temperatures, but rift far from over
At the RBI board meeting on that day, neither side actually blinked on the issue of transferring reserves from the RBI to the government’s accounts
Government-RBI rift: Forcing central bank to give Rs 3.6 lakh cr from cash reserves would jeopardise inflation story
Every year since 2014, the RBI has transferred all the profits it has made to the government
Non-banking finance companies' mess: Cash-strapped firms haven't seen the worst of liquidity crisis yet
In 2017-18, non-banking finance companies (NBFCs) were the largest net borrowers from the financial system
Rise and fall of IL&FS: A bailout is a blunder; India's debt trapped infra financiers are walking on a minefield
Whatever the final outcome, IL&FS will never be the same institution again. In some ways, that is a pity; but markets have none.
The Great Indian NPA Mess: Bad loans can snowball into banking crisis; Jaitley's solution has political overtones
NPAs on the other hand, have been growing. The problem was that banks did not have the capacity to assess infrastructure projects which were much bigger now.
Fast forward to today, and interest in the deal – the sale of Air India, Air India Express (the budget airline) and AI-SATS (a 50:50 joint venture with a gateway services and ‘food solutions’ provider) as one entity – is not exactly bubbling.
PNB scam fallout: Indian auditing is stuck in the nineteenth century; it is time to audit the profession
Can the auditing profession really hide behind a grass skirt given the scale of stressed assets across public sector banks?
There are just too many variables in the assumptions that underlie the government’s announcement.
There is no imbalance in the Indian banking system, just a distorted perspective; privatisation isn’t the only solution
Public sector banks narrowed the performance gap after 2000. Perhaps, popular perception hasn’t caught up as yet.
PNB-Nirav Modi fiasco: When all has been said and done, what kind of a banking system will we be left with?
Government ownership banks – public sector banks (PSBs) account for more than 70 percent of the system, both on the deposit and credit sides – has made us complacent about their fate.
The correlation between NPAs and potential fraud in PSU banks raises all kinds of red-flags, something that RBI itself has pointed out
Fraud typology is roughly the same across countries. But where India is probably way behind is in the preparedness of banks in fraud risk management.
Market mayhem: If you link Sensex, Nifty bloodbath to Budget and economy, you are making a fool of yourself
Any investment banker will tell you that the best time to get a great price for your IPO is when the markets are booming (he will probably call it best valuation). The test is in the after-listing performance of the companies.
The government’s cash flow operations are disrupted, so to speak, and need some re-adjustment.