India’s Strategic Petroleum Reserves

The cabinet approval to begin filling of the third strategic petroleum reserves is an important milestone in building the petroleum inventory within the country.  The inventory buildup carries huge significance, especially for oil importing countries like India, as it would help meet supply needs in case of any disruption. Here is a look at the … Continue reading India’s Strategic Petroleum Reserves
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IDBI Bank – NPAs, Provisioning and the Rest…

IDBI Bank, which reported its quarterly results last week, continues to remain in deep NPA mess. With provisions of about Rs 10,000 crore towards NPA during first half of this financial year, its total provisions have gone up to Rs 33,000 crore covering about 68% of expected loss, up from 54% a few quarters back … Continue reading IDBI Bank – NPAs, Provisioning and the Rest…
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Corporate Analysis – Hindalco Industries

Hindalco Industries registered consolidated revenue of Rs 1.16 lakh crore in FY18, almost the same as L&T and Tata Steel. However, company doesn’t have as much visibility as the other two, partially due to lower profitability of the business. Its net profit for the year was about Rs 6,000 crore against as high as Rs … Continue reading Corporate Analysis – Hindalco Industries
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Status of Global Economy, Ten Years on – IMF Report

As per the Global Financial Stability Report released by IMF (International Monetary Fund) last month, global economy continues to maintain growth momentum. This has been aided by stronger banks, substantial improvement in regulatory standards and curtailment in the activities of so called shadow banks. However, there could be a reversal in trend as reflected in … Continue reading Status of Global Economy, Ten Years on – IMF Report
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Indian Judicial System – Status & Reforms for “Contracts Enforcement”

While India has improved its performance substantially in the ease of doing business over last two years, its performance in “Contracts enforcement” is still quite concerning. As per the report, average time taken for resolution of a legal dispute is more than 4 years. This also involves expenses of almost 30% of amount under dispute, … Continue reading Indian Judicial System – Status & Reforms for “Contracts Enforcement”
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Ease of Doing Business – The Great Indian Leap..!

Reports from two global institutions recently give greater credibility to the government’s effort to simplify business process. One from the World Bank showing sharp improvement in ease of doing business rank from 100 to 77 and second, jump in World Economic Forum‘s competitiveness index to 58th, up five places. More importantly, World Bank report is … Continue reading Ease of Doing Business – The Great Indian Leap..!
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Is the Government Impinging on RBI’s Autonomy??

Comments by RBI deputy governor, Viral Acharya, accusing the central government of impinging on the autonomy of central bank has caused huge ripples across the markets. The impact of his comments has been even greater as the market is already grappling with a liquidity freeze. However, the key point is, is government really interfering in … Continue reading Is the Government Impinging on RBI’s Autonomy??
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Analyzing Government Debt – Current and Historical perspective

Amidst the continuing liquidity crisis, NBFCs mismanagement and banks’ NPA woes, there is one trend that gives some reason to cheer. Total liabilities of the central government have come down to just about 50% of GDP at the end of FY18 as per RBII data. This is a substantial improvement from a high of 67% … Continue reading Analyzing Government Debt – Current and Historical perspective
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