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Should India Open Up Debt Market?

Should India Open Up Debt Market?

On April 1, the bonds of the Chinese government and its three policy banks responsible for financing economic and trade development and state investment projects were added to the Bloomberg Barclays Global Aggregate Bond Index for next 20 months. Following this, as much as $150 billion could flow into the world’s second largest economy, which has been showing signs of slowdown. With at least $1.

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To Bank Or Not To Bank On Indiabulls

To Bank Or Not To Bank On Indiabulls

A day after Indiabulls Housing Finance Ltd (Indiabulls) and Lakshmi Vilas Bank (LVB) announced its decision to merge and create Indiabulls Lakshmi Vilas Bank, the nation’s eighth largest private bank by assets, a Reserve Bank of India (RBI) release clarified that the merger announcement didn’t have the regulator’s approval “at this stage”. This was to quell the speculation that the central bank’s nod was a given since its two nominee directors have been on the bank’s board. Incidentally, the mortgage company too has a couple of former RBI deputy governors on its board.

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Dear Governor: Let’s Find A New Way To Deal With Bad Loans

Dear Governor: Let’s Find A New Way To Deal With Bad Loans

The Reserve Bank of India (RBI) will issue a revised circular on stressed assets resolution in the wake of the nation’s apex court striking down the contentious February 12, 2018, directive to clean up the bad loan mess in Asia’s third largest economy. The regulator had issued the directive, armed with the Section 35AA of India's Banking Act. The new Section empowered the Union government to authorise the RBI to direct banks to resolve specific stressed assets by initiating the insolvency resolution process.

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Will Jet Airways Continue To Fly? Wait For Seventy-two Hours

Will Jet Airways Continue To Fly? Wait For Seventy-two Hours

On Thursday night, after Kolkata Knight Riders vanquished Royal Challengers Bangalore at an Indian Premier League match when Andrew Russell smacked his seventh six, , scoring 48 off 13 deliveries, Sunil Gavaskar said this was a classic instance of snatching victory from the jaws of defeat. While watching the match in the evening on TV, I got many text messages from executives of Jet Airways (India) Ltd, giving a running commentary on how Indian Oil Corp Ltd stopped supplying aviation fuel to the airline that day and resumed later and its lessors were asking the India’s aviation regulator to deregister planes leased to Jet for non-payment of lease rental. (Once they are deregistered, the lessors can take them out of India and lease to other airlines.

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Supreme Court Judgment Is A Blow But War On Bad Loans Will Continue

Supreme Court Judgment Is A Blow But War On Bad Loans Will Continue

At the risk of being in contempt of court, I would love to say that Tuesday’s Supreme Court judgment in military parlance is akin to a “surgical strike” on the Indian central bank. The judgment is a big blow to the Reserve Bank of India’s (RBI) war against rising bad loans in Asia’s third largest and the world’s fastest growing major economy. The apex court has set aside the February 12, 2018, circular of the RBI, which among other things directed banks to take the defaulting power, sugar, shipping companies to the insolvency court.

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Reserve Bank Will Go For Another Rate Cut This Week; 25 bps?

Reserve Bank Will Go For Another Rate Cut This Week; 25 bps?

At the Mumbai launch of former Reserve Bank of India (RBI) governor YV Reddy’s latest book Indian Fiscal Federalism (co-authored by G R Reddy), governor Shaktikanta Das referred to Reddy’s tenure as “continuity and change… mixed together appropriately” -- something which Reddy himself had said on assuming office in September 2003. When Reddy’s turn came at the launch function, he spoke about the change in the approach of the new governor too. For the record, in his five-year tenure, Reddy had never cut interest rate even once but Das cut the rate at his very first monetary policy meeting.