The Indian stock market has had a difficult few months. The NSE Nifty 50 Index declined for 10 straight days recently—an unusually sustained dip. Policymakers in New Delhi tend to maintain a lordly indifference to turbulence in equities. But, on this occasion, they need to pay closer attention. America’s whipsawing tariff policies might have unsettled…
Bank fixed deposits have been the most popular place in India for decades to invest short-term funds, but liquid funds are now emerging as one of the top substitutes. To make effective investment decisions, it is important to know the manner in which liquid funds will prove to be more advantageous for investors than bank…
Debates on the significant decline in India’s GDP growth rate in the second quarter of 2024-25 and the revised estimates of growth for the year have been all over the media. The narratives have ranged from it being a secular decline to just a quarterly blip. Pundits have volunteered diagnoses and prescriptions accordingly. However, the…
Banking is at the heart of any nation’s growth. When democratised, it becomes a financial engine capable of uplifting the masses on a large scale. The Indian banking industry is currently at a significant crossroads. It’s struggling to reinvent itself in the face of rapidly scaling fintechs, who are fast capturing the untapped customer segment….
With a new RBI governor at the helm, the MPC will consider the latest information on consumer price index (CPI)-based inflation and GDP growth available since the last meeting. Average headline CPI inflation in the third quarter of 2024-25 at 5.6% was well above the target, though in line with RBI’s baseline estimate. The National…
Mumbai: Deposit growth has been lagging advances lately, sparking a vigorous debate among bankers, including the RBI, over the reasons for this divergence and how to boost savings. On Thursday, the country’s top bankers differed sharply over what was causing the deposit-credit mismatch. Some of them blamed mutual funds, which fetched superior returns, and sought…
Bank deposits seem to have lost their charm for the vast majority of savers, leaving banks scrambling for deposits. Indeed, finance minister Nirmala Sitharaman and Reserve Bank of India (RBI) governor Shaktikanta Das have urged banks to pull out all stops to garner more deposits. Against this backdrop, RBI deputy governor Rajeshwar Rao’s recent speech…
In 2022-23, it collected gross premiums of â‚ą21,381 crore, with investment income at â‚ą11,908 crore, and revenue surplus after tax at â‚ą24,559 crore. As an insurance company, it has an actuarial valuation for liability as of 31 March 2023 at â‚ą12,174 crore, but surplus collection to date beyond actuarial liability totalled â‚ą1,57,427 crore. The total…
Indian regulators and policymakers have amplified their call for banks to become innovative in raising deposits. This low-cost source of funds is trailing the pace of bank lending, and if credit-deposit gaps persist, lenders would either need to rely more on costlier sources or go slow on credit, which could drag the growth of our…
