Seldom has the Union budget been so critical for India’s state-controlled banks that account for a little over 70% of loan assets. Twelve of the…
Month: February 2016
Budget 2016-17: Eight cheers to public sector banks
The biggest negative for India’s state-owned banks in the Union budget is finance minister Arun Jaitley’s announcement that the government will infuse (only) Rs.25,000 crore…
Bad bank can wait, let’s recast ARCs fast
The asset reconstruction companies or ARCs in India, which are in the business of buying bad loans from banks and making money by recovering them,…
Bad loans: Unconditional capital infusion will be a band-aid approach
All hell broke loose two decades ago when Chennai-based Indian Bank posted a Rs.1,336 crore loss for the fiscal year 1996, wiping out its entire…
What’s killing bank stocks?
Bank stocks rose in the past two trading sessions. Is it the so-called dead cat bounce or a short-lived rally in a declining trend? Nobody…
Budget can create space for RBI’s next rate cut
The 2 February monetary policy review and Reserve Bank of India (RBI) governor Raghuram Rajan’s interaction with the media after the release of the policy…
Rate cut can wait, liquidity is a bigger issue
In the September 2015 review of monetary policy, the Reserve Bank of India (RBI) surprised the market by cutting its policy rate by half a…