Banks’ NPA – Taking Stock..

Banking sector’s NPA (Non-Performing Assets) has become a cause of concern again with RBI’s observation that the same may increase in next 12 months. RBI’s latest Financial Stability Report (FSR) attributes the same to change in economic environment leading to fresh slippage and declining credit growth. Here is a look at the aggregate NPA level, … Continue reading Banks’ NPA – Taking Stock..
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OXFAM Inequality Report – Sign of Economic Health or An Economic Crisis??

The annual OXFAM report makes for another distressing reading with world’s billionaire, totalling just 2,153, owing more wealth than 460 crore or 60% of humanity on earth! Further, wealth owned by top 1% is twice that of 690 crore or 90% of humanity. What makes it worse is that governments across the world are in no way, equipped to arrest the increasing concentration. Continue reading OXFAM Inequality Report – Sign of Economic Health or An Economic Crisis??

Inflation Targeting – Has Monetary Policy Failed to Deliver??

The sharp increase in inflation (CPI) to 7.35% for Dec’19 has put a question mark on whether inflation targeting (IT) based monetary policy really works? While the question may be pertinent, it would actually be ridiculous to blame monetary policy for this spurt. More importantly, it is essential to deliberate on the proper indicator of inflation which monetary policy can influence. Here is a look at the dynamics of inflation and how monetary policy works. Continue reading Inflation Targeting – Has Monetary Policy Failed to Deliver??

Corporate Bond Market – Tracking the Developments

Corporate bond market in India is going through a challenging time as a result of the defaults over last one year or so. While efforts of government and regulators had provided the necessary nudge, these developments have dented the confidence of the newer participants and fence sitters. More worryingly, it has affected the credibility of … Continue reading Corporate Bond Market – Tracking the Developments
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Agriculture Sector – Issues and Challenges

India’s rural economy remains an area of significant concern due to low level of income and high population dependent upon the same. Income of a farmer, which was about 35% of an urban worker in 1980s, has further declined to 30% now. Despite all the efforts and large spending, the sector just does not seem … Continue reading Agriculture Sector – Issues and Challenges
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Industry Analysis – Pharmaceuticals

Indian pharmaceutical industry is among some of the industries going through deep-rooted structural changes. It is, probably next to food industry, in terms of its sensitivity to socio-political structure and has been subjected to greater price control over last few years. Going a step further, the government has now proposed putting a ceiling on margins … Continue reading Industry Analysis – Pharmaceuticals
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NBFCs – A Liquidity Crisis or An Insolvency Crisis??

The NBFC crisis seems to be posing a unique challenge. While NBFCs are complaining of severe scarcity of liquidity, banks’ lending figures reveal another story. As per RBI data, banks’ borrowings of NBFC has gone up by 21% y-o-y till Sept’19. In fact, their total balance sheet has grown by 13% to Rs 32.6 lakh … Continue reading NBFCs – A Liquidity Crisis or An Insolvency Crisis??
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Corporate Analysis – ArcelorMittal Steel.

After a long, gruelling insolvency process extending over 2½ years, ArcelorMittal, along with its JV partner, Nippon Steel, has gained management control of Essar Steel. The takeover also marks the entry of the company, promoted by Indian born, Mr Lakshmi Mittal, into India after failing in its organic attempts over a decade ago. Here is … Continue reading Corporate Analysis – ArcelorMittal Steel.
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