IBC: Escape Route for Big Corporate ?
The then Finance Minister late Mr. Arun Jaitley & the present Finance Minister Smt. Nirmala Sitharaman used to say that IBC will prove to be a game changer. Indians are scared of stigma &...
Reserve Bank of India or the Richmen Bank of India?
RBI has been losing credibility since demonetisation. Its subsequent efforts like not intervening when Bank charges were increased, proposing banking licences to corporates which RBI all along opposed on well found principles, allowing more...
Indian Economy in Shambles-What is to be done?
RBI has downgraded India’s growth projection to 9.5% from 10.5%. World Bank projects it at 8.3%. Actually, it may be worse. This is at the backdrop of GDP growth of a negative 7.3%. Last year,...
Of Rising Govt debt and Bond Markets
Most of us plan our expenses in a way that we not only have enough saved for our needs but also leave behind a little something for our children. In contrast, our government is...
Loans to Corporates – It’s high time to implement the RBI decision of 2016
RBI announced in August 2016, that it will move to cap exposure of banks to large borrowers while also taking steps to deepen the Corporate Bond Market. RBI stated that starting from next fiscal year...
Is Forbearance the Original Sin?
Chapter 7 of Economic Survey dealing with the banking crisis strongly emphasizes that the continuation of the policy of forbearance followed in the wake of Global Financial Crisis (GFC) even after 2011 was the...
Random Reflections- Demonetisation – The cruel joke on the People
After demonetisation on November 8, 2016, seeing the anger of the people, on Nov 13 PM Modi in an emotionally choked speech in Goa said “I have asked the country for just 50 days....
Random Reflections— Narasimham Committee to Kamath Committee- Restructuring Loans or Restructuring of Banks?
From the day banking started, bankers always had a plan for handing loans going bad. Banking says giving loans has a credit risk due to various reasons. Banks become a partner to the borrower...
Snippets from the world of Indian economy and banking
State-owned banks need Rs 2 trillion in capital over next two years: Moody’s Public sector banks (PSBs), which have already had weak capital buffers, will need at least $25 billion in funding from external...
Random Reflections- Solutions for the Banking Sector
“Call the dog mad and shoot it” was the old slogan. The present slogan is, “poison the dog, make it look like mad and shoot it”. The governments have done exactly the same with...
Random Reflections- Privatisation of Financial Sector – A road to ruin
Almost all financial newspapers have informed that 3-5 banks and 3 general insurance companies are going to be privatized. They have indicated that Bank of India, Indian Overseas Bank, UCO Bank, Punjab and Sind...
Random Reflections: 51 Years of Bank Nationalisation – Was it a sin? A vision? A missed opportunity? & What’s today’s position?
Nationalisation of the banks which had deposits above Rs.50 Crores, covering almost 85% of the total deposits on 19th July 1969 was historic, dramatic and welcomed by majority of the people. Some described it...
Updates from IMF: Forecast for Post-COVID Economy and Debt Levels
The International Monetary Fund (IMF) released two updates in the month of June – first was the World Economic Outlook, titled A Crisis Like No Other, An Uncertain Recovery and another was the Financial...
Random Reflections- Are the Public Banks Already Private?
Institutions do not become public only because of ownership by the state. They should serve the people at large who are the real owners. While nationalising banks, the purpose was not to earn profit...
Concept Note titled Public Money: Resistance Against Arbitrary Bank Charges
Banks act as financial intermediaries between depositors and borrowers. It is the public money, deposited in the form of term deposit (fixed deposits) and time deposit (saving accounts) which banks use for lending to...
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