The most pressing issue facing the financial sector is the rising stock of non-performing assets in the banking system
'My sense is that we should be braced for a correction.' 'It has already begun in the mid-caps for the past month, and will now spread to larger stocks as well.' 'Use the correction to upgrade the quality of your portfolio,' advises Akash Prakash.
Data used for the graph and cited elsewhere in the column were obtained from various publications of the RBI.
After opting for status quo in policy rates, Reserve Bank Governor Raghuram Rajan on Tuesday said any more cut will depend on further transmission of previous rate cuts by banks, softening in inflation and progress of monsoon.
The Reserve Bank might hike the Cash Reserve Ratio (statutory cash balances banks maintain with the apex bank) by 0.50% in its credit policy if inflation remains high, feel Indian bankers. The RBI is scheduled to announce annual credit policy for fiscal 2008-09 on April 29. RBI is likely to tighten money supply in its forthcoming annual credit policy to suck out excess liquidity from the system. Growth has moderated in recent months.
Banks get bonds boost to raise funds for core sector; up to Rs 50 lakh of home loans in metros and Rs 40 lakh in other cities not to have CRR, SLR requirements
The niche banks - small finance and payments banks -have been set up to further the regulator's objective of deepening financial inclusion.
Senior bankers are trying to impress upon the central bank that the shift to external benchmark-linked lending be postponed to April 1, 2020.
Rajan strongly defends RBI's decision to hold the key rates in the absence of any new data points.
The Reserve Bank of India on Tuesday hiked the cash reserve ratio by 25 basis points.
In putting the country's economy back on the rails, it is best that Narendra Modi and Arun Jaitley draw on grass-roots feedback and their own practical sense and native wisdom without allowing themselves to be sucked into the quicksand of economic punditry, says B S Raghavan.
'The recent US jobs report has eased fears of a hike in the Fed meeting.'
Payment banks may not be viable option to attain financial inclusion.
The recent agreement between the RBI and the Centre marks a significant step forward toward financial inclusion.
The year 2014-15 could well go as one of long-pending financial sector reforms, expected to have a lasting impact.
Headed by Urjit Patel, MPC for the fourth straight time kept the repo rate unchanged, at which it lends to the banks, at 6.25 per cent. The reverse repo, at which RBI borrows, will be 6 per cent.
The Urjit Patel committee on monetary policy framework has proposed setting up of a monetary policy committee (MPC) that will be headed by the Reserve Bank of India (RBI) governor and accountable for achieving inflation target set by it.
The market could be influenced by events elsewhere in the world and regardless of what happens to India's economy
Banks in India must have a modern approach, suggests a panel comprising of banking bigwigs.
The finance ministry has put out a revised draft in public domain.
In household savings, there has been a persistent shift towards physical assets.
China's economy is in transition, with rising wage costs and massive overcapacity.
'We don't know how much the Pay Commission outflow will be.'
'The Reserve Bank's independence has remained a work in progress, an enduring challenge that the nation has been grappling with on an ongoing basis,' says RBI Deputy Governor Dr Viral Acharya.
India still has to go a long way to implement reforms in various sectors.
Tamal Bandyopadhyay discusses his latest book Bandhan: The Making of a Bank at Bandhan headquarters in Kolkata.
'Let's walk on two legs: Facilitate better resolution under the present system and set up PARA as well by transferring loans amounting to, say, Rs 1 lakh crore.'
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