Is the Insolvency Proceeding Helping Banks to Resolve NPA?


In an interview with Bloomberg, SBI Chairman Rajnish Kumar had said ‘It is important that we give a message that if potential bidders are trying to suppress the values, then banks are not going to accept it’, obviously referring to the resolution process effectiveness being pursued against debtors under Bankruptcy…

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Budget 2018: Everywhere But Nowhere?


The best way to summarize today’s budget is that ‘It is everywhere but nowhere’. Let’s map the key outcomes to the issues & concerns we raised in our pre-budget analysis. Feedback on structural concerns: Food for all: (For details, click here) 25%: India’s contribution to global hungry people count of…

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Is India’s Poverty & Illiteracy Driving Down Prudential Financial Decision?


Do you know that only 5% of an Indian household savings is in financial assets and unsecured debt constitutes more than 50% of the liabilities? These and many facts were highlighted by the report of a RBI appointed committee. For a comparison, consider the facts that China is at 9%,…

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The Economy Stress Signals & Rising Sensex


RBI released the data for sectoral credit for banking as of May 2017, a few days back. Our endeavor is not only to share some of the key insights from the data released but also connect the dots after connecting the same with other economic parameters. Overall it reflects significant headwind…

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Getting Over The NPA Hangover


The biggest crisis the banking ecosystem & primarily the public sector ones are facing today is NPA and it is primarily concentrated in some 10-20 key corporate accounts. Lot of noises and now even an ordinance has been pushed through to resolve it but no resolutions in sight. So what…

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Why Banks Are Reducing Savings Rates?


For last few days, banking headlines are all about reduction of interest rates on customers deposits. Many are calling it ‘banks gundagardi’ etc but the logic is very simple. It is in bank interest only! Post demonetization, banks are flush with cash so there is no need to keep deposit…

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The Indian Banks NPA Juggernaut! Why Everyone Is Worried?


If you are made to believe that ‘farm loan waiver’ is the biggest threat to Indian banks (primarily PSBs) NPA woes, then you may be quite wrong! And if you are thinking that ‘bad bank’ can solve our bank’s woes as it did to Citibank, then again, you may be…

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