Balance of Payment (BoP) for 2017-18, as per the RBI data, shows a reasonable jump of over 13% in exports. this has come after a gap of five years during which it has shrunk by nearly the same amount. However, the gans were more than negated by even sharper increase of 20% in imports. But these brief numbers do little justice to the complex dynamics of goods, services and financial trade. A brief attempt to give more sense to the numbers.. Continue reading “India’s Balance of Payment – A brief Analysis.. (Part I)”
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..
While software services continue to get maximum attention, Business services is also a sizeable segment and provide some useful insights. The segment reported exports of over $37 bn, less than software, but substantial nevertheless. In fact, its growth rate at 13% implies that it is not witnessing the kind of challenges software is going through. Further, … Continue reading India’s Balance of Payment.. (Part II)
The Central Statistics Office (CSO) released estimates of GDP growth for quarter ended June 18 (Q1 ’18) which hit a eight quarter high of 8.2%. More importantly, manufacturing sector, one of the eight categories within GDP, has shown rebound growing at 13.5%, almost double of last eight quarter average. The sector, contributing nearly 30% to the … Continue reading Analysing GDP and its constituents..
The Insolvency & bankruptcy code (IBC) has received unprecedented attention since its promulgation about two years back, more so, through the whole of this year. The designated courts have also been very busy adjudicating on cases filed before it, trudging through a nascent law which has gone through several amendments. The amendments have made the … Continue reading Decoding Insolvency & Bankruptcy Code (IBC)…
Another important factor leading to NPA is changes in ground realities. While a project is conceived factoring in a particular scenario, it doesn’t materialize or changes drastically by the time the project is commissioned. One glaring example of this is huge investment in natural gas based power plants, specially closer to Andhra Pradesh coast. This … Continue reading Understanding Bank NPAs.. (Part II)
Bank’s NPA which remains at over Rs 10 lakh crore for the quarter ended June 18 continues to haunt the sector. The problem is even more severe for Public Sector Banks which account for over 80% of these NPAs. So, how bad is the problem and what are the core factors leading to this mess? … Continue reading Understanding Banks NPAs.. (Part I)
The passage of Ordinance related to NPAs has renewed the sense of urgency to clear up the mess with Gross NPA of the banking sector crossing Rs 6 lakh crore mark. More worryingly, there is no sign yet of a trend reversal. An analysis to understand where this NPA is coming from.. It is important to understand … Continue reading NPAs – Sectoral Analysis…
Honourable Supreme Court’s decision last week disallowing “Compensatory Tariff” to Tata Power and Adani Power brings back this power sector invention into limelight. The compensation had earlier been awarded to these companies by the Appellate Tribunal for Electricity (Aptel) to compensate for unforeseen increase in the cost of generation. However, this concept is unique since no other industry … Continue reading Understanding "Compensatory Tariff"..
The push to Indian Manufacturing sector and ‘Make in India’ campaign can receive a boost from some key sectors whose growth has preceded the growth of the economy across the world in recent times. These are Apparel and Footwear offering significant opportunity to accelerate employment generation and boost growth as per the Economic Survey. A look at … Continue reading Strengthening Manufacturing – Case of Apparel and Leather Industries…