Last week, the government announced a capital infusion of Rs.22,915 crore into 13 state-run banks. The nation’s largest lender, State Bank of India (SBI), will get around one-third of it, Rs.
A day after the Reserve Bank of India (RBI) released its biannual Financial Stability Report, outlining the “significant challenges” being faced by Indian banks, 31 of 33 big banks in the US cleared the final round of the Federal Reserve’s annual stress tests, signifying the resilience of the US financial system. Only one of the largest banks of the US—Morgan Stanley—got a conditional passing grade and two others, Deutsche Bank AG and Santander Bank NA, both US subsidiaries of European banks, failed. In the previous year too, the duo did not qualify.
A close relation of one of my friends, a senior executive at a multilateral agency for years now, is quite upset because her name does not feature in the media “list of probables” for the Reserve Bank of India (RBI) governor’s post. Ditto about an economist attached to an Indian think tank. This gentleman has stopped attending parties to avoid embarrassment of explaining to his peers why his name is not there.
n the past fortnight, I met more than a score of foreign investors across countries. Reserve Bank of India (RBI) governor Raghuram Rajan’s decision not to seek an extension after his three-year term ends on 4 September dominated every meeting. Broadly, the foreign investors were curious to know why Rajan is not looking for another term (his immediate predecessor D.