Few people are looking at the connection between two developments.
-- First, India’s Finance Minister has been steadily bringing down the Central government’s fiscal deficit as a share of GDP. In fact, she has been so firm in this effort that total Central government spending/GDP has been falling in the...
State Bank of India (SBI), India’s largest bank, became even larger with the merger of its five commercial banking subsidiaries on April 1, 2017.
Leading up to the All Fool’s Day merger, in mid-February 2017, finance minister Arun Jaitley was confident the step would make the bank a global player; a month...
EXECUTIVE SUMMARY
For the beleaguered non-bank finance company (NBFC) sector, banks are the single largest component of external funding. This source peaked at the end of September 2018, in the aftermath of the default of IL&FS, a private unlisted infrastructure developer and financer. However, in the beginning of the last...
It is a commonplace that banks are a proxy for the economy. When the economy does poorly, one would expect banks to do poorly, since their main activity is intermediating funds between lenders and borrowers, and it is harder to find good borrowers when the economy is stalling.
With India’s...
Hemindra Hazari 27 March 2017
Can half the workforce of rural India be considered “marginal to the economy”? That, it appears, is what Lord Meghnad Desai, eminent economist, Gujarat-born and UK-naturalised Labour life peer and Indian Express columnist, believes.
Desai has had a notable academic career, earning his doctorate at the University of...
EXECUTIVE SUMMARY
Yes Bank has appointed Ravneet Gill as the bank’s CEO, effective latest from March 1, 2019, for a 3-year term. The announcement led to a spurt in the bank’s share price, as the leadership issue was finally resolved. While investors rejoiced, it remains to be seen whether the...
Hemindra Hazari 20 March 2017
After the BJP’s decisive victory in the Uttar Pradesh (UP) state elections, alarm bells have started tolling in the capital market.
The primary cause for concern is the BJP’s promise to the UP electorate to waive off all farm loans and provide fresh loans at zero percent interest. Capital market...
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EXECUTIVE SUMMARY
Yes Bank is in the cross hairs of the Reserve Bank of India (RBI), the banking regulator. On February 13, 2019, the bank issued a press release stating that the regulator’s risk assessment report (RAR) for the year ended March 31, 2018 revealed nil divergence, i.e. the bank’s...
