The trio, 'twin shocks' of demonetisation and GST, 'twin balance sheet' problem that has been weakening India's banking system and the 'twin deficit' problem will continue to challenge economic management and performance in the year ahead, says Shankar Acharya.
As many as 433 borrowers have taken loans of over Rs 1,000 crore.
'Those who come from outside are surprised at the relatively small strength of the RBI supervisory cadre, relative to the needs of the country and the needs of the financial sector.'
The evolving RBI-government relationship, a reversal in the interest rate cycle and return to profitability will dominate bankers' conversation this year, says Tamal Bandyopadhyay.
Governor Rajan stressed on the benefits over a medium-term.
'We have seen a host of businesses across sectors generate economic value and wealth for investors.'
Bankers need to take a call on whether they will allow technology firms to run banks or banks themselves will turn into tech firms, says Tamal Bandyopadhyay.
'The PSBs ended up recording Rs 7,709 crore losses in the March quarter compared to the Rs 11,688 crore profits of their private peers,' reveals Tamal Bandyopadhyay.
Yashwant Sinha explains where the Modi government has gone wrong in its handling of the economy.
At a time when the asset quality of state-owned banks is deteriorating, the Reserve Bank of India is also planning harsher penalties for wealthy promoters of wilful defaulters.
Banks have been patient and flexible in rescheduling loans.
'It's a toss-up between a fire sale of equity or merger with a strong bank,' points out Tamal Bandyopadhyay.
The protests came after Speaker Om Birla announced the end of Question Hour at noon as the designated time for it is 11 am to noon. While asking the first supplementary, Gandhi said he wanted to know the list of 50 top wilful defaulters, including funds given and the amount written off by banks but did not get a proper answer in the written reply.
Bad loans of PSU banks rose by 28.5 per cent.
Indradhanush-II is likely to chart out the process for resolution of non-performing assets.
The gross bad debt of the Indian banking system as of March was at Rs 7.11 lakh crore
When we are unwell, we consult a doctor, take a prescription, and then buy medicines from a chemist. In finance, too, it is best to keep investment advice and product purchase separate, suggests Bindisha Sarang.
Since January 1, the rupee value has fallen by 5.5 per cent against the US dollar and touched life-time low of 58.98 on Tuesday.
The incoming government will have to encourage private investments, bring down cost of capital
RBI says haste in easing norms for banks harmful to economy.
Banking and real estate stocks rise up to 5% on further rate-cut hope.
'We get to know secrets such as some of India's top-rated firms do not always make payments when due and many State-owned, listed, enterprises that borrow in bond markets default regularly.' 'Without naming the bank, he says that ever-greening of poor loans by a part of India's shadow banking lay at the doorstep of India's banking, notably 'one private bank'.' Viral Acharya's Quest for Restoring Financial Stability in India won't be music to many ears, observes Tamal Bandyopadhyay.
The central bank has, so far, cut its repo rate by 125 bps.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
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2014 made a lot of promises; can the new year deliver?
In related findings for India, the FATF in a report brought out last month, chronicled the use of banking channels to fund the activities of the banned terror group Hizb-ul-Mujahideen.
The main issue has been that of a higher Asset Management Ratio as has been prescribed by the Monetary Authority of Singapore for qualifying full banks from India.
While IDBI Bank's 140 million customers and 1800-odd branches will come in handy for LIC to hawk insurance, the bank can use LIC's massive agent network to sell its retail loans. But if it is run the same way it had been in the past and LIC is a proxy of the government, then it has no future, says Tamal Bandyopadhyay.
'I have very little faith in economists who tell me that demonetisation will reduce growth.' 'The greater effect of demonetisation is if it creates changes in the financial services system and gets people to shift from cash.' 'The economy is not a trained monkey that will jump around if you lower rates.'
Premium valuations and lack of big triggers will weigh on Indian equity markets in the near term, believes Mahesh Nandurkar, India Strategist, CLSA.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
The repo rate could be reduced by 50 bps in the current year.
'The overall stress on asset quality is indeed coming down.'
The principal challenge for Rajan's successor is to work with the Bank Board Bureau and the finance ministry to complete these processes of banking reform.
'The entire system acted as cheerleaders to Vijay Mallya. The RBI failed, the banks failed, the auditors of the banks and Mallya failed.'
The assets under management of the 44-players mutual fund industry stood at Rs 24.55 lakh crore in May-end from Rs 23.93 lakh crore in April-end.
If the new governor can think out of the box even as he signals that he can bat for the RBI cadre and respect its institutional memory, that will go a long way in getting out of the current impasse.
The continuing stress faced by corporate India has weakened their debt-servicing capability and this is reflected in the banks' books, as yet-burgeoning bad loans.
Young investors could allocate in the proportion of 70:20:10 to equity, debt and gold.
India has a unique window of opportunity to effectuate long-lasting structural change in its banking sector, says Riju Agrawal.
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