RBI's ambivalent stand on YES Bank CEO raises uncertainty
That compares with 21 of 57 economists, or about 40 percent of them, in a poll taken before the GDP data was published
The yield curve has steepened sharply; and banks fear the spike in bond yields has caused profits to decline equally sharply
Two big bang reforms-demonetisation and goods and services tax - did not deliver what they had promised in 2017
Banks might not have realised the exact implication of risky projects under PPP projects, which were getting implemented under high leverage
RBI revised merchant discount rates for debit cards to promote debit card acceptance by wider set of merchants
Incidentally, the report has been on the RBI website for over nine days now, but the media has somehow ignored its importance
India's central bank has failed in regulating the banking system
In a sign that banks are perhaps getting more comfort from the stickiness of their deposits after demonetisation, the incremental credit-deposit (CD) ratio has crossed 100, while the incremental investment-deposit ratio has been falling steadily and was as much as negative 230 on July 7.This means that banks are lending whatever amount of deposits is coming on an incremental basis, often liquidating their investment portfolio.The incremental CD ratio never crossed 100 before, at least since 2011, according to the data with the Reserve Bank of India (RBI). The last time the investment-deposit ratio was in negative territory was in April 2016.The ratios paint a vastly different picture of what the general perception is about the banking system. It is perceived that banks are getting risk averse in lending and resorting to lazy banking, which is putting all their money in government securities. The perception is also exists because the ratio of investment to deposits of banks has ...
Real Life actors such as RBI try to manage supply of money to keep inflation in check