Operation NPAs

Will the most ambitious attempt be actually successful?

The RBI has embarked upon one of the most aggressive phases of NPA management. It has actually attacked the NPA problem simultaneously at two levels. Firstly, at the banking level, the Prompt Corrective Action (PCA) has been initiated against banks that have net NPAs beyond a certain threshold. The PCA will entail granular scrutiny of operations, restrictions on dividend payout, limits on recruitment and employee compensation, bar on branch expansion etc. Continue reading “Operation NPAs”

GST Launch

Why the government must go ahead on schedule…

With the GST launch date of July 01st fast approaching, the jury is still out on whether Indian business is prepared for the launch. Frankly, there are no clear answers and one will know only once the entire GST is implemented. There are, in fact, 4 key reasons the GST Council must go ahead with a timely launch. Here is why… Continue reading “GST Launch”

Commodity Options

The biggest challenge will be liquidity and asymmetry…

The SEBI took a major step this week by announcing the regulatory and operational framework for commodity options. The largest commodity bourse by volumes, MCX, has already indicated that it will be ready to launch commodity options in the next 3-4 months. Before we get into the challenges, here are some of the key features of commodity options… Continue reading “Commodity Options”

Chasing Bank NPAs

How the RBI has taken two important steps to rescue the banks

In the last couple of months, the RBI has initiated two very important measures that will go a long way in alleviating the problem of NPAs in the banking system. At over $110 billion of NPAs and nearly $180 billion of stressed assets, this was a massive problem. In fact, the entire bank credit by the PSU banks has stagnated due this mountain of NPAs. So how exactly is the RBI tackling this problem? Continue reading “Chasing Bank NPAs”

Why PM Modi’s visit to Germany could be a game-changer…

Prime Minister commenced his 4-nation tour with a visit to Germany. Based on initial reactions, at least, the visit appears to be a huge success. However, it is more important to understand the context of the visit and why the visit assumes special significance in the current circumstances. Continue reading “Why PM Modi’s visit to Germany could be a game-changer…”