The report on development of Corporate Bond Market in India submitted by RBI’s working group yesterday doesn’t seem to have the potential to cut much ice. For one, the recommendations of the committee, chaired by Mr H.R. Khan, are quite similar to proposals made by the chairman in his earlier speeches which have not covered much ground … Continue reading Untangling Corporate Bond Market..
Recent announcement by SBI and ICICI bank to form Asset Reconstruction Company (ARC) in collaboration with global players is an important step ahead for Indian Financial market. The ARC business, which has been existing in the country for almost 15 years now hasn’t got the momentum it needs. The entry of these players should help ARCs get onto their … Continue reading Asset Reconstruction Company – From Slag to Cement..!
We are precisely in the middle of the year..! Time for everyone to take stock.. 🙂 The weekly highlights are – RBI releases its Bi-annual Financial Stability report. The report paints a mixed picture where even though the number of “weak” companies has come down, the risk to banking sector has increased. (More on this, … Continue reading Weekly Round Up – Week 26
Many times, projects are conceived factoring in a particular scenario, which doesn’t materialize or changes 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, based on the premise that large amount of gas would be extracted from … Continue reading Bank NPA… (Part II)
The Finance secretary Mr Ratan Watal’s statement on the issue again re-affirm the fact that the government is firing on all cylinders and in all directions..! The proposal simply means that instead of mandating banks to give loans at lower rates to certain categories such as farmers or textiles plants under different schemes, it will … Continue reading Interest Subvention vs Interest Subsidy – A far reaching reform measure…