A staunch defender of demonetisation, it would be interesting to see how he handles the government's increasing demand for more cash from the RBI, and letting some weak banks get out of prompt corrective action.
For willful defaulters, change in ownership accompanied by punitive action against the defaulting management is the way to go.
The main reason was that CPI inflation would likely remain below 4 per cent till July.
For banks, the package will limit the burden of provisioning for stressed loans. Besides, the proposed restructuring package for MSMEs with a credit of up to Rs 25 crore is expected to provide a breather to units from this sector.
If a name does not unify the three, there could be continued clash of identities, which could splinter the brand even before it takes shape, say Abhijit Lele and Nikhat Hetavkar.
Tension between the government, specially the finance ministry, and RBI is as old as the central bank itself.
Governments that did not respect the central bank's independence would sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined the regulatory institution, Deputy Governor Viral Acharya warned.
The problem for the NBFC sector is the funding inertia by banks and not lack of funds.
The current episode highlights the structural vulnerabilities in the liquidity management practices of Indian NBFIs
PSB executives said loans to group holding company IL&FS and entities might still be treated as "standard".
The general nervousness because of the IL&FS default will prevail in the system for now.
The IL&FS group has a complicated structure, with the holding company owning stakes in its financial services arm as well as the subsidiaries that operate its infrastructure assets.
Alvarez & Marsal will develop a detailed restructuring plan for the group to demonstrate to shareholders and lenders that it was self-sufficient in repaying its liabilities. So far, the IL&FS management had been working on its revival plan.
'When the rupee was at 65 a dollar, we wanted to go to Thailand for a holiday.' 'Now at 72, we may find Goa much more attractive.' 'That's how correction happens.' 'If you don't let that correction happen, then it's a pressure cooker that bursts one day.'
At least a 25 basis points hike can be expected on the October 5 policy
In dollar terms, the Indian markets managed to climb back to 2008 levels only in January this year. The subsequent fall in the rupee because of emerging market woes has once again pushed the markets below their 2008 level in dollar terms.
Vijaya Bank assured employees that the service conditions 'will remain unaffected and staff benefits retained'
The RBI has cited corporate governance and regulatory issues for not extending Kapoor's term. Further, the lender has been directed to search for a successor.
Brokerage firm CLSA says in its interactions with government officials, measures such as the dollar-deposit scheme were under consideration.
The rupee has depreciated 10.5 per cent against the dollar this year, making it Asia's worst-performing currency.
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