Eleven in-principle licences for payments banks have been a pleasant surprise. Not too many were expecting the banking regulator to be so liberal. In the next few weeks, when Reserve Bank of India (RBI) announces its nod for small business banks, we may see an equal number of new entrants, if not more.
After little more than a decade, a new private bank is born in India—Bandhan Bank Ltd. This is the first bank to come up in eastern India after Independence. A new bank is always welcome as a large slice of India’s 1.
Nineteen out of 39 listed Indian banks have recorded a drop in profits in the June quarter and for some of them, the decline is between 95% and 81%. Fourteen such banks are controlled by the government. Of the 20 listed banks that have announced an increase in profits, 11 are from the private sector.
Shares of India’s state-run banks have been rallying since 31 July when finance minister Arun Jaitley announced a Rs.70,000 crore capital infusion into this set of banks over four years. Going by the plan, Rs.
There is no surprise in the Reserve Bank of India’s (RBI) third bi-monthly policy statement on Tuesday. As expected by a wide segment of the market, the policy rate remains unchanged at 7.25% even as the Indian central bank reiterated its accommodative monetary policy stance, something that was missing in the June policy review.
Driven by higher food prices, retail inflation in India accelerated to a nine-month high of 5.4% in June, from 5.01% in May, and above the consensus estimate of 5.