Indian Banking: Digital Paradox


Digital has been the biggest game changer in Indian banking especially in last 5-7 years. The proliferation of smart phones, transformation of connectivity with 3G/4G and spectacular growth of ecommerce has further catapulted digital banking. There are enormous statistics that will stand to prove the above. Let us look at…

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NPA: Why It Is A Curse on our Economy?


Indian banking system reeled under fresh slippages of more than 2.3 lakh crore in FY1819.  The write offs (including Technical) grossed more than 2 lakh crore while provisions towards NPA stood at nearly 2.6 lakh crore. Compare this with India’s fiscal deficit of 6.35 lakh crore! The comparison is worth…

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RBI Dividend and Your Father in Law


100,000,000,000,000 INR! For those lost in the zeros, it is ten lakh crores. That’s the RBI’s stated equity position, which GOI believes is too high and wants some of it transferred to government. But RBI believes otherwise, leading to numerous committees earlier and now with the Bimal Jalan committee, being…

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Did Demonetization Pressure Tilt Indian Digital Barometer?


The question though is whether it tilted enough, considering the inconvenience caused by demonetization. Digital is important to economy as it brings down cost of transaction, improves efficiency of financial system, increases transparency and transforms customer experience. Replace of more cash by digital and adoption of digital by a wider…

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PNB Merger with OBC & P&SB: What promise does it hold?


The confusion reigning high in Indian economy currently, reminds me of the famous remark Lt. Col. Frank Slade (aka. Al Pacino) makes in the movie ‘Scent of a Woman’; “When in Doubt…. F***”! So, when PSU banks are reeling under stressed assets on one hand and government pressure to implement…

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Tweaking Indian Retail Payment System: Why RBI need to be careful?


RBI recently released a draft policy paper on Indian payment system. The highlight, off-course, is the retail payment segment. NPCI plays a very leading role here, processing nearly 48% of the retail electronic payment transactions (excluding paper) in volume and 15% by value. It manages multiple payment systems, which includes…

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RBI vs. Government: The Dividend Faceoff


It’s funny! RBI has paid 500 Billion INR to GoI in FY1718, which is nearly 200 Billion INR more than FY1617, but the government says ‘Dil Mannge More!’. RBI already transfers the entire surplus to government after setting aside part of net income as provision for ‘rainy day’; so, what…

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