When an inflation-skeptic like Raghuram Rajan obliges you with an unexpected rate cut, it means he too is convinced that the tide has turned. The rate cut signals that the economy is now ready for growth
Rajan has been under pressure both from the government and industries to go for an early rate cut
The RBI cited lower-than-expected inflation, weak crude prices and weak demand, as well as the government's commitment to sticking to a fiscal deficit target.
The finance ministry welcomed an inter-meeting rate cut by Reserve Bank of India (RBI) on Thursday.
Here's the full text of the RBI statement made after it reduced the repo rate by 25 basis points
To make sure economic revival is real, thus, the Modi government and the central bank will have to work on both sides of the problem almost simultaneously
SBI is currently in the process of reconstituting the grievance committee authorised to classify an account as wilful defaulter
If Postal Bank of India wants to become a full service bank and engage in corporate lending, it would, somewhat, be the creation of yet another public sector bank -- a puppet of the government to roll out its populist measures and feed corporate greed.
Banks are unlikely to reduce their base rates in the same fashion and quantum they have cut their deposit rates
Unless the governments steps into the picture and take meaningful steps to address the concerns of employees in state-run banks, the present scenario will continue
If Modi can ensure the legal changes, then one can be bullish on public sector banks for longer term
Without government ceding the control, absolute autonomy for state-run banks will not happen
Andhra Pradesh and Telangana governments had declared loan waivers for the farmers hit by cyclone Phailin last year
You cannot wean people away from gold unless you offer at least one of its benefits - as an inflation hedge - in a new instrument. People don't like complicated inflation-indexed bonds. They may be willing to try fixed deposits
Perhaps, Modi should take a lesson or two from Rajan before hurrying with the bank merger, if that indeed is a proposal
Barring a few potential mishaps, the chances are 2015 will be better for the economy and hence the markets
Faced with a huge drop in tax revenues, the fiscal deficit target for 2014-15 will be missed without spending cuts. The finance minister is likely to cut plan spending. But he should be speeding plan spending and bank recapitalisation
There is some good news and some bad news to welcome the New Year.
The Reserve Bank released performance parameters for 90 Indian and foreign banks a few days ago. Firstpost has used the same data and parameters to rank banks through a widely-accepted methodology. Here's what the numbers say.
The entry of post to the scene can change the game in banking. May be, that’s the best gift Modi can offer to India’s poor in 2015
The PM the finance minister need to focus on making public sector banks guzzle less capital. This can only happen with autonomous management and more efficient staff.
Until the time government handholds these banks and micromanages them, it is unlikely that state-run banks will see any major change in the way they operate
If the recovery fails to materialize and the current conditions worsen, banks' GNPA level can worsen to 6.3 percent by March 2016
The government has listed PMJDY as an achievement of the finance ministry in the last six months
Once clarity emerges, other banks too will tag Kingfisher and Vijay Mallya wilful defualters
The ING Vysya Bank unions also made allegations against the senior management about money laundering and granting housing loans with high leverage
The Calcutta High Court rejected the UBI's decision to call Vijay Mallya a wilful defaulter on a technicality. If courts are going to go by mere technicalities to delay banks from recovering their dues, only crony capitalists will celebrate
The time is perhaps right for the government to look at privatising some of the state-run banks
The monetary authority did not have any support from the fiscal authority, when Subbarao headed the central bank
If the change in language in the economic review represents the overall thought-process in the finance ministry, it augurs well for Rajan and his team