Bimal Jalan Committee Report – A Critical Analysis

The Bimal Jalan committee submitted the much anticipated report on determining RBI’s surplus reserves late last month. While the report did help RBI transfer some surplus to the government, there is still lot of money left with RBI. So, what are the recommendations of the committee and how does RBI’s balance sheet look like. Here … Continue reading Bimal Jalan Committee Report – A Critical Analysis
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Weekly Round Up – Week 37

Major news for the week are reasonable growth in IIP, declining automobile sales, reasonable bids received by IL&FS for its road assets and sale of stake by ADAG group company. In the international news, ECB re-starts its bond buying in a sign of anticipated slowdown. Continue reading Weekly Round Up – Week 37

Explaining Negative Interest Rate – Japan’s case

The current state of gloom in the global economy has led many economies to adopt negative interest rate policy (NIRP). Among the early adopters is Japan which adopted this policy in Jan’16 after other monetary tools failed to spur economy. While NIRP hasn’t helped the economy, it is difficult to predict what would have been … Continue reading Explaining Negative Interest Rate – Japan’s case
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Interconnectedness of Financial Sector – An Overview

The turmoil across all the segments of Indian financial sector can be attributed to one factor – the interconnectedness of these institutions. The interconnectedness arises because one set of institutions mobilize more funds than they utilize and another set needs more funds than they receive from primary source. So, if any NBFC defaults on its … Continue reading Interconnectedness of Financial Sector – An Overview
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RIL’s Evolving Strategy – Aramco Deal and Beyond

The deal between RIL and Saudi Aramco announced last week is part of several de-leveraging measures being undertaken by RIL and the biggest of all. For Aramco, it is an attempt to de-risk its business against the uncertain dynamics of oil market. Here is a brief attempt to understand this deal and other measures being … Continue reading RIL’s Evolving Strategy – Aramco Deal and Beyond
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Annual Survey of Industries (Part II)

Recap – As per MOSPI survey, there are a total of 1.94 lakh factories operating in the country with Rs 43 lakh crore of capital invested (2016-17). Gross value added (GVA) by these factories was Rs 12.7 lakh crore from their operations. Continue reading Annual Survey of Industries (Part II)

Annual Survey of Industries – Government Report (Part I)

Total factories within the country recorded aggregate net profit of Rs 5.4 lakh crore during FY17 as per the annual survey of industries carried out by Ministry of Statistics, Planning and Implementation (MOSPI). The report is based on actual field based survey covering close to 80,000 factories and therefore, comes with a time lag. Although … Continue reading Annual Survey of Industries – Government Report (Part I)
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Efficiency and Efficacy of MGNREGS – The Economic Survey Report

Among the issues covered by the Economic Survey this year are the gains arising out of technological intervention in MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme). The scheme has received even greater push with the technological interventions such as direct benefit transfer (DBT), Aadhar and more recently, Geo-tagging of assets. Even though MGNREGS has generated substantial controversies ever since its launch and continued debate on its benefits, its impact on rural economy cannot be ignored. Here is a look at the scheme based on the economic survey report. Continue reading Efficiency and Efficacy of MGNREGS – The Economic Survey Report

Housing Finance Companies (HFCs) – An Overview

Housing finance companies (HFCs) are facing increasing attention and tightening of regulations, fallout of NBFCs crisis. A turning point has been the default by DHFL, a leading HFC. The crisis being faced by the industry is unprecedented and can lead to fundamental change in their business model because of their inherent disadvantage vis-à-vis banks. But … Continue reading Housing Finance Companies (HFCs) – An Overview
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How Stable is the Financial Market?? – RBI Report

Even though the market remains roiled by instances of default by NBFCs and their impact on other financial institutions, risk faced by the entire financial sector has actually come down. This is as per the financial stability report (FSR) released by RBI a few weeks back. While that looks difficult to believe, it is due to improvement in finances of core banking institutions, more particularly, the public sector banks. Here is a look at the details. Continue reading How Stable is the Financial Market?? – RBI Report