Hemindra Hazari
In the ongoing demonetisation saga, the credibility of India’s central bank keeps plunging to new depths.
Repeated contradictory notifications, restrictions on cash withdrawal of deposits, inadequacy of new notes to replace the withdrawn high denomination notes, and a complete lack of transparency are just a handful of examples....
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...
It has been 3½ years since the Reserve Bank of India imposed a moratorium on Yes Bank, superseded its board, and organised a financial bail-out by a State Bank of India (SBI)-led consortium, as well as a board and financial restructuring. While financial solvency and stability have been restored...
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...
EXECUTIVE SUMMARY. In the SBI-led bail-out of Yes Bank assisted by private sector entities, HDFC Bank, the largest private sector bank, is notably absent, as is Indusind Bank. Stranger still, much smaller banks like Bandhan Bank, Federal Bank and IDFC First have decided to come to the rescue of...
