In an interesting move, RBI conducted simultaneous sale and purchase of government bonds today. (The announcement for the same was made last week). Even though it is normal practice to either sell or purchase bonds to manage liquidity in the market, doing both simultaneous was possibly the first time in India. So, what is the reason for this and what are its implications. Here is an attempt to understand. Continue reading Operation Twist! – Understanding RBI’s Latest Move.
Corporate sector saw many important developments during the year. A large number of them involved downfall of a company/ its promoter but an important success, ArcelorMittal getting control of Essar Steel after a long and hard-fought battle and entry into the Indian market. Major companies/ promoters to see their decline are Reliance ADAG, ZEE media, … Continue reading The Year That Was – Corporate & Industry
It was an eventful year amidst slowing growth and turbulence across sectors necessitating several policy responses. The most notable events in the policy space were amendments in IBC, move towards consolidation among banks, corporate tax rate cut to spur the economy and on the monetary policy, several rate cuts and other measures to boost the … Continue reading The Year That Was – Economy & Policy
NBFI comprises of All India financial institutions (AIFIs), Non-banking finance companies (NBFCs) and primary dealers (PDs). There are four AIFIs – National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), National Housing Bank (NHB) and Export Import Bank of India (EXIM Bank). AIFIs were established decades ago to meet long … Continue reading Financial Sector in India – An Overview (Part II)
The financial sector in India is going through a unique period with all the three major segments – SCBs, NBFCs and Co-operative banks going through a crisis. The crisis has led to serious brain storming among the policy makers to reduce regulatory arbitrage and improve regulatory oversight. While heavy involvement of government is cited as … Continue reading Financial Sector in India – An Overview (Part I)
IMF’s India report, released earlier this week, has maintained India’s growth rate at 6.1% for FY20. This seems to have brought cheers among the market participants as others are predicting growth closer to 5%. However, the reason for high IMF projection is that the report is based on information till Oct’19 which did not include … Continue reading IMF’s India Report – A Critical Analysis
While most of the segments of financial sector are going through considerable turbulence, insurance sector hasn’t seen any solvency issues (at least, not till now). A reason could be small number of players, although it would not be correct to ignore the role of the regulator, IRDAI (Insurance Regulatory & Development Authority of India). Yet, … Continue reading Insurance Industry in India – An Overview
Regional Rural Banks (RRBs) are also witnessing a wave of government pushed amalgamation, like other segments of banking sector. The latest of these was carried out last month merging three RRBs in UP into one. Even though RRBs are healthier and less politically influenced than co-operative banks, the reason for their establishment itself doesn’t seem … Continue reading Regional Rural Banks (RRBs) – An Overview
The inability of exports to make up for the domestic slowdown has further reduced the growth momentum. This also brings focus on rupee exchange rate as to whether it is aiding or hindering exports. It is often stated that Indian currency is overvalued reducing the competitiveness of Indian exports. This looks contradictory considering the fact … Continue reading Currency Exchange Rate – How Does It Affect Foreign Trade?
Even though Indian Legal System has stood the test of times for its rule-based judgment process and fair trial, there is one adage on which it has possibly, failed to deliver. And that is, “Justice delayed is justice denied”. The same applies not only to civil or criminal cases but also to business cases. Indeed, … Continue reading Indian Legal System – “Justice Delayed is Justice Denied”.