I hate to say this but it seems that Indian banks, particularly those majority owned by the government, seem to have too many skeletons in their closets. The growth in their restructured assets bears testimony to that. In the September quarter, the banking industry added Rs.
Two public sector banks—Kolkata-based Allahabad Bank and Bank of India in Mumbai—have new chief executive officers. Shubhalakshmi Panse took charge as chairman and managing director of Allahabad Bank in October, replacing J.P.
Merger, merger on the wall Akira Kurosawa’s 1950 crime drama film Rashomon opens on a woodcutter and a priest sitting beneath the Rashomon gate at the southern end of Suzaku Avenue between the ancient Japanese cities of Heijo-kyo (Nara) and Heian-kyo (Kyoto) to stay dry in a downpour. When a commoner joins them, they begin recounting to him a disturbing story that they had witnessed. The woodcutter claims to have found the body of a murdered samurai three days ago while looking for wood in the forest.
Two critical data points, released last week, on the face of it make the Indian central bank’s job less difficult than what it has been so far. The wholesale price inflation for October at 7.45% is the lowest since February, much lower than market expectations of 7.
A slowing economy is the best backdrop to distinguish between efficient and not-so-efficient banks. When the economy is booming and there’s plenty of liquidity in the system, banks make money with both hands. The rush of money drives down bond yields, leading to hefty treasury gains for banks.
A quarter percentage point cut in banks’ cash reserve ratio (CRR), or the portion of deposits that commercial banks need to keep with the central bank, effective the fortnight beginning 3 November, releases Rs.17,500 crore into the system. This is the fifth CRR cut since January when the Reserve Bank of India (RBI) slashed the reserve requirement by half a percentage point, from 6% to 5.