A rift between the five powerful labour unions at Coal India is set to clear the way for PM Modi's govt to complete a stake sale in the state company that is critical to hitting budget targets.
In the absence of a careful approach, as the RBI highlighted, 7.5 crore zero-balance accounts will become a liability to the system
India will focus on sustainable economic growth and developed economies should do the same, Reserve Bank of India Governor Raghuram Rajan said on Tuesday.
The rupee ended little changed on Tuesday after earlier hitting a one-month low as oil companies accelerated dollar purchases, offsetting optimism that new stimulus measures in Japan would continue to push foreign investors into emerging markets.
Infosys' co-founders S Gopalakrishnan and SD Shibulal have come together again to set up Axilor Ventures, a business incubator to help entrepreneurs and early-stage firms succeed in diverse verticals.
Japanese Prime Minister Shinzo Abe was expected to announce on Tuesday that he will delay an unpopular sales tax rise and call a snap election, a day after data showed the economy had fallen into recession nearly two years after he returned to power.
By 2015, when small and payment banks start setting up shop, the competitive scenario is bound the change substantially. The high-margin banks will face competition for cheap deposits
Given the RBI's focus on financial inclusion, smaller banks with local knowledge and operational experience can do much more to financially include the unbanked than full service banks
In a worst-case scenario, the Jan Dhan Yojana could cost banks or the govt upto Rs 13,500 crore annually. But once more subsidies are moved to direct transfers and bank accounts, it will break even
Despite the clamour for rate cuts, which has just risen to deafening levels, Rajan is not likely to cut the policy rate in its 2 December review
The important takeaways from the earnings and management speak
Is Sujana yet another instance of loan recast system being misused to hide actual bad loans on the books of lenders?
The higher net profit during the July-September was due to a 39.4 percent on year increase in other income to Rs 4,571 crore.<br />
These banks are expected to bring in a large chunk of the public, especially in rural areas and other places with low penetration, into the formal banking system
Clearly, the burden is on state-run banks. Through Jan Dhan, Modi is using state-run banks to gain political mileage
If growth sustains and retail inflation, mainly food inflation, sustains its declining trend for another few months, the central bank may loosen its purse strings by April. Any rate cut prior to that would be a surprise
Bank credit continued its tepid growth yet again, notching up a low 11.17 per cent to Rs 62,72,621 crore.
So far, there has not been any meaningful intervention from the government in resolving the wage issues in the public sector banks
The new regulations will weed out weak and non-serious players from the NBFC business; but many of them, which fail to survive in the new regime, would continue to operate underground
The US Fed will not allow banks with 10 percent of the system's liabilities to grow further through M&A. SBI is India's too-big-to-fail bank by far. Should it be allowed to grow any bigger though M&A?
What the RBI has now done, in that sense, is taking a step back from its own stated policy stance and even taking a step backwards. It should correct the mistake
With a view to streamline the regulations for the sector, RBI also revoked temporary suspension on issuance of Certificate of Registration (CoR) to companies that want to conduct business of non-banking financial institution (NBFI).
The lower cost of borrowing is working in Rajan's favour, easing pressure on the RBI to immediately cut rates and allowing him to uphold his hawkish reputation on inflation.
The new rates are effective from 3 November. <br />
On the concerns about high rates stifling the growth, Kydland, who is now a professor of economics at the University of California, indicated that it may not be the case. <br />
The current deposit rate cut spree will most likely be succeeded by reduction in lending rates across segments and even in base rates of banks if the credit growth remains subdued and economic revival takes longer than expected
Reviving growth is not a simple matter of reducing interest rates. Companies invest when their real returns are higher than real borrowing costs, and not necessarily when nominal rates are lower
The financial burden will ultimately fall upon the government, which is the owner of state-run banks
The Supreme Court has held that the revival of sick units will take precedence over banks' efforts to recover bad loans by selling the collateral pledged. Banks have more reasons to worry
Rajan is unlikely to get carried away by the lower inflation number and change his course of action on possible rate reversal