Are we being unfair when we constantly fret over the slow transmission of interest rates by banks when the repo rate is cut? This has become a habit of late, one where there is a lot of concern raised on the slow transmission
Capital is the driving force in banking, more pertinent for PSBs. This issue has to be tackled head-on in the current year as the demand for credit should be better since there would be no disruptive policy.
It has to be understood that growth is a slow process and cannot be achieved by either cutting the repo rate by 100 bps or increasing the fiscal deficit by 1%
RBI has mooted the idea of creating a secondary market for bank loans in the latest credit policy. The idea already exists in modified forms for certain categories of loans. Impaired assets were being sold to other takers whi
The stock market is known for its idiosyncratic ways, and, hence, it is hard to predict which way it will go. The indices are driven by a variety of factors, and most of the effects are for specific sessions, before it is bus
Creating a new price index that aligns with the GDP composition is the only way to make monetary policy effective as it can curb excess demand forces across the economy
In this context, the economic indicators that prevailed just prior to the elections can be examined in the last five elections to deduce whether macro indicators matter or not. Hence, for the 1996 elections, the GDP growth of
Rigging an election is done broadly in six ways and is an eye-opener, as it can happen even in western countries. The first is ‘gerrymandering’, where the district borders are redrawn, so that there is a mismatch between
Automation in banking has done away with the need to have more people at the service level, and even the skilled manpower requirement will decline over time
While all companies follow the practices under corporate governance, the board is often not assertive enough given the stature of the CEO who could be the owner.
Further, trade negotiations over tariffs between the US and China are underway and any movement therein will impact the currencies, which will have an effect on gold.
Coming out from an era of colonialism, India tended to be statist or socialist in outlook, as capitalism was looked down upon with suspicion and linked with the past.
In the last five years, there has been a sea change in the quantum of transfers. The surpluses have increased manifold and hence resulted in a bounty to the government.
While Rs 18,500 crore would be lost as tax revenue, it will be made up by higher consumption, leading to increased collections, thus making the fiscal arithmetic strong
But rather than targeting the PM, they could have generalised their views, as almost all parties have realised that Ayodhya and Sabarimala are potential vote winners and hence a dualistic view has been adopted.
The govt’s push for SME loans via PSBs, relaxing the IBC norms for NPAs in certain sectors and relaxing the capital conservation requirement for certain banks smacks of the prevalence of the policy mindset that brought abou
