Columns

As the RBI and the government prepare for a crucial meeting of the RBI board on November 19, the discussions have boiled down to one critical question, and it carries a Rs 3.6 lakh crore tag. This is the amount of money the government wants the RBI to transfer as dividend or surplus. The pressure... read more

There has been much discussion around zombie firms and zombie lending in recent times. In India, the term has been used (and was referred to again last week by the RBI Deputy Governor N.S. Vishwanathan) in connection with the way loans have been dished out and restructured and kept rolling, giving... read more

How do we prevent a situation like the present implosion within the Central Bureau of Investigation (CBI)? Till the 1990s, the CBI was considered the only dependable instrument to impartially investigate high level corruption and tangled crimes. That impression disappeared with the “hawala” scam... read more

Two years ago, a visibly angry Finance Minister, responding to the Reserve Bank of India’s inaction on reducing interest rates, as desired by his government said he would “walk alone” if the RBI would not cooperate. He was referring to the growth process which requires lower interest rates, which... read more

The Reserve Bank of India was set up twelve years before India’s independence. In the eight decades of its existence it has distinguished itself with conduct of the highest global standards. It is among a handful of national institutions known for exemplary integrity and incorruptibility. It may,... read more

It is barely two years since Urjit Patel took charge as Governor of the Reserve Bank of India. Viral Acharya, the Deputy Governor, has spent even less time in his post. The appointments came soon after the exit of Raghuram Rajan, whose term as Governor was not extended amid an unseemly row whipped... read more

At the heart of the rift is an uneasiness and some alarm in the bureaucratic and the political circles that PCA will accelerate the loss of market share and cause further decline of the position of the PSBs in the financial system in favour of private banks and foreign banks.

In terms of a speech, it is unprecedented in its forthrightness and signals a pushback like none other. It marks an almost unprecedented waving of red flags to bring to the attention of people that the nation will have hell to pay if what is being said is not heeded at this crucial time. And... read more

In different parts of the world, at various stages of the evolution of humanity and in various ways and to different degrees, voices have risen and spoken up against injustice, and for the protection and preservation of democratic values. In India, the time to speak up is now.

A global movement that focuses on human capital as a driver of change and growth for a new generation is a welcome move. It turns focus from physical infrastructure, a “here and now” issue and therefore more looked at, to human capital, which will yield dividends much later, and can help change... read more

Some economists are vigorously churning out statistics to prove that the Indian economy is generating enough jobs. Some of them are also challenging the thesis that inequalities are increasing. In fact, some even suggest that inequality does not matter! Their statistics-laden arguments remind one... read more

Gujarat has again captured the attention of the entire country for the wrong reasons. The assault and harassment of migrant livelihood-earners belonging to North Indian States in pockets of the North Gujarat region, following the dastardly rape of a 14-month-girl, has brought fear and forced many... read more

India’s economic growth this year will once again be among the fastest in the world, even ahead of China. The real GDP growth rate, i.e. adjusted for inflation will be more than 7 percent this fiscal year, whereas China may fall below 6.5. Economic growth is an input to improve the quality of life... read more

Under Kochhar, the bank consolidated, but its DNA of aggressive growth took over and problems were back soon. In 2018, PAT was down 30% to Rs 6,777 crore. By July, the bank reported a net loss of Rs 120 crore for the April-June 2018 quarter, its first quarterly loss in 16 years. When Kochhar... read more

M J Akbar has quit. But not before we saw how he wanted to cling on. He was not the one to leave his berth in a hurry. But that failed attempt to hold on was not his decision. That decision was of the Bharatiya Janata Party, in whose arms Akbar has landed after travelling through many a political... read more

After two rounds of a hike in the policy repo rate, the Monetary Policy Committee (MPC) has announced a pause. The policy repo rate, which is meant to influence and transmit over time to the rate at which banks lend to borrowers, stands unchanged at 6.5 per cent. The MPC voted 5:1 to keep the rate... read more

The resignation of Chanda Kochhar from ICICI Bank has come not a day too soon. Her formal exit from the bank announced on October 4 marks a sorry end to a career that mirrored the rise and transformation of Indian banking – she rose as ICICI grew from a stodgy corporation known for project... read more

Contrary to widespread expectations of an increase of 25 basis points (by 50 bps by some), the Monetary Policy Committee (MPC) has maintained the status quo on the policy rate. Despite turbulent market conditions and liquidity easing measures taken in the days leading to the policy, it changed the... read more

The MPC of the RBI caught almost everyone by surprise by keeping the policy repo rate unchanged at 6.5 per cent in its fourth bi-monthly meeting for 2018-19 by a 5-1 majority. However, it changed its stance from ‘neutral’ to what it called ‘calibrated tightening’. An overwhelming majority of market... read more

The change in stance from neutral to “calibrated tightening” also puts to rest any speculation about cut in rates and clearly sends the message that the pause in the rate move is just that — a pause. The rationale for a “flexible” inflation mandate has been fully vindicated by this decision. While... read more