Banking Sector Interconnectedness in India..

The latest Financial Stability Report for March ’18 released by RBI shows that interconnectedness of Indian Banking industry has come down considerably over last year. That is important to note since the rapid spread of contagion during financial crisis in 2008 was primarily due to the fact that the financial institutions in US had become highly … Continue reading Banking Sector Interconnectedness in India..
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Analysing Amalgamation of BoB, Vijaya Bank & Dena Bank..

The amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank announced yesterday comes more than a year after the last successful merger in the PSB space. It clubs two PSBs having less than 2% market share with a mid-sized bank to create the country’s third largest bank. However, there are still around ten PSBs … Continue reading Analysing Amalgamation of BoB, Vijaya Bank & Dena Bank..
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Ordinance on NPAs – The Fight Continues…

The promulgation of the Ordinance yesterday for resolution of Non Performing Assets (NPAs) is another measure to tackle the crisis gripping the banking sector. Yet, the ordinance could be another dead ball and nothing that one can hope would work wonders due to lack of market participants. A look at the implication of the ordinance… An Ordinance is … Continue reading Ordinance on NPAs – The Fight Continues…
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Monetary Policy – From "Accommodative" to "Neutral" stance..

Belying the expectations of a rate cut, the monetary policy committee (MPC) has not only decided to keep the rates unchanged in its meeting today but more importantly, has shifted its stance from “accommodative” to “neutral’. This is “to assess the transitory effects of demonetization on inflation and the output gap”. The shift marks a significant … Continue reading Monetary Policy – From "Accommodative" to "Neutral" stance..
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Banks Loan Composition – An Overview..

After growing at over 18% CAGR during FY08-12, bank credit growth came down sharply to 11% during FY12-16 and may fall to single digit in FY17. Although the decline is largely due to economic slowdown, a significant part is also due to shifting priorities with increase in NPAs of specific sectors. A look at the … Continue reading Banks Loan Composition – An Overview..
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Money Supply – Understanding the Different Forms..

Demonetisation has brought focus on currency in circulation and different types of money supply. Even though currency in circulation has come down, other forms of money supply do not show similar decrease. How is that so and what are the characteristics and significance of different types of money supply. A look at the same.. The first … Continue reading Money Supply – Understanding the Different Forms..
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