Birth of Small Finance Banks & Payment Banks in India

December 2, 2014

Small Payment Banks IndiaTo cover the continuously growing population of India by Banking services, the RBI has finalized two types of new banks – Payment banks (PB) and Small Finance Banks (SFBs) as the way forward.

PBs will provide basic set of functionality – small savings accounts with a maximum amount of INR 0.1mn per account, ATM cards Read more

India Private Sector Banks Gain Market / Profit Share

November 9, 2014

Indian Private Sector Banks - ReviewThe H1-2015 earnings from Indian Banks confirm acceleration in market share gains for private banks given the rising capital constraints and stressed financials of PSU banks. Private banks have taken a 30% share of incremental loans in past 12 months and 50% share of loans in last six months, as compared to their market share of 20% of the total banking system loans.

While, private banks have even historically had Read more

Black Money Taxation can Wipe Out India’s Fiscal Deficit

June 4, 2014

BlackMoney in India ReformsThe White Paper on Black Money[Non Tax Paid] in India makes for very good background reading on various ways of generating black money: the paper focuses on black money generated via non-disclosure to public authorities rather than that generated from illegal activities.

How is Black Money Generated in India ?
Eighteen ways of manipulating accounts to Read more

India Begins a new Journey Towards $5 Trillion Economy

May 13, 2014

Rise of Indian EconomyAfter a productive boom period during 2003-2007 with high growth and moderate inflation, India has been facing a stagflation type environment since 2008 with the Corrupt Congress Government at the helm of affairs, and a persistent slowdown in growth alongside high inflation. The agenda driven politicians in Congress caused (a) a sharp increase in rural wages, (b) a high fiscal deficit, (c) a decline in private investment, and (d) weaker external demand.

Worst Is Behind UsWith the progressive BJP Government all set to be installed within the next few days, expect the Structural Growth Read more

RBI Favors Gradual Lifting of Gold Import Curbs on Indian Banks

April 10, 2014

Gold Imports IndiaThe Reserve Bank of India (RBI) has allowed five more banks to import gold to ease the restrictions that have been imposed on the precious yellow metal last year.

The RBI has permitted gold imports by Axis Bank, HDFC Bank, IndusInd Bank, Kotak Mahindra Bank, and Yes Bank.

The 80:20 rule that was imposed on gold last year states that 20% of all gold imports in India have to be re-exported. Under this rule, only Read more

Industrial Weakness – 5 Years of Stalled Projects by Congress Politicians

April 4, 2014

Breaking News - ExclusiveThe Indian Industry went into a prolonged phase of Policy & Project Paralysis as the Congress Government got itself into defensive mood to defend itself against the massive Scams [2G Spectrum Scam, Common Wealth Games, Coal Scam, etc] with absolutely ZERO attentiosn towards Governance and Progressive Reforms. Industrial CAPEX Data released by CMIE March 2014 shows that investment for the quarter was lackluster, with average four quarterly new starts at Rs967bn (-10% qoq / -14% yoy). This capex slowdown is in line with the weakness seen over the past 12 quarters and as we expected given the upcoming national elections. We expect activity to be slow in the quarter ending June 2014 as well and improve only gradually. Government capex fell sequentially (-11%) after increasing over the last two quarters. Private capex showed no signs of revival. The decline was driven off continuing weak activity, particularly in the transport and mining segments.

Stalled projects as a percentage of total outstanding remained at elevated levels of ~5%. Given our expectations of a Read more

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