A strange picture of India’s financial system is being drawn, where privatisation is being pushed even as critical analysis and reporting on private sector entities is slowly being discouraged.
Although Roopa Kudva quit the bank transparency body in July 2017, there has been no public intimation of this development.
The display of such largesse should be a troubling signal for shareholders who worry about corporate governance.
The additional loss of Rs 5,792 crores in the quarter ended March 2017 surprised the capital market. Were the regulator, the parent bank and SBI’s chairperson aware of the state of asset quality in its subsidiaries?
At Axis Bank and Yes Bank, it appears that a single auditor of a member firm of Ernst and Young has overlooked gross NPAs of a staggering Rs 13,655 crore.
The constant extension of a deadline to reduce promoter shareholding could net Uday Kotak and his family members a hefty sum.
The single-minded focus on GDP growth ignores the low income and, consequently, poor demand potential of the bulk of India’s population, downplaying the ill effects of poor policymaking.
The charge of moral hazard reeks of double standards. However, will India’s fiscal deficit targets allow for such a waiver?
While the bank has denied rumours of a potential merger, what issues need to be considered? The bank’s operations and the state of its loans needs to be minutely examined.
While a hue and cry was raised by economists when the government gave oil subsidies, they are all mum now that petroleum taxes have been raised sharply.
Unusual citations in the survey could indicate the awkward situation of the chief economic adviser, in the face of interference by the finance minister or even the prime minister’s office.
The economy requires a massive increase in government expenditure to overcome the drastic impact of demonetisation. But will this cause foreign capital to depart?
Deputy governor R. Gandhi’s claims on the quantity of low-value notes pumped into circulation are false. The giant release of small change is just another attempt at spin.
Blaming the money laundering instances on a few employees and suspending officials may deflect public and regulatory criticism but the cancer is widespread.
Arvind Subramanian’s earlier statements indicate he has been against the idea of “Big Bang” reforms, arguing instead for an incrementalist approach.
The dual reporting structure comes at a time the bank should be strengthening and not diluting the independence of its risk management team.
There is a need to coordinate efforts to direct credit to the crucial sectors of the economy to stimulate growth, otherwise the same mistakes made in the past with infrastructure loans will be repeated
Patel’s nomination has been hailed as an example of continuity of Raghuram Rajan’s policies; if this is so, then what was the need to let Rajan go in the first place?
The government’s policy will have to ensure that foreign investors and the stock markets do not lose confidence.
The term “watch list” is a bit misleading, giving the impression that the loans on the list may eventually turn out be healthy. But Axis Bank stated 60% of the watch list will become non-performing assets.
The bank’s shocking performance in the last financial year should raise serious questions about its management.
The stock markets are falling, the rupee is sliding; this may be time for ideas such as taxes on capital outflows
The hard numbers don’t warrant optimism, but there is an inbuilt bias to continue looking for “green shoots” rather than face the facts
More puzzling than the media’s softness towards private banks is the regulator’s feather-touch approach which allows them to engage in questionable practices.