The risk-off sentiment in global markets has resulted in outflows from Indian shores, puncturing valuations of listed firms here. This gives long-term investors an option to buy resilient balance sheets at a bargain.
On a cumulative basis, the pickup in rainfall was significant in July but the distribution was uneven. The month of August now holds the key for kharif output
Key driver would be a sustained improvement in both quantum and dispersion of rainfall in the crucial month of August
Money supply growth has decelerated slightly on the back of a slowdown in bank deposit growth.
Liquidity surplus is falling faster than anticipated but this fall is also uneven across the banking system, shown by sporadic borrowings at repo auctions and a consistent fall in standing deposit facility subscription.
The real effective exchange rate captures the competitiveness of the rupee against a basket of currencies.
The hunt for deposits would intensify among banks which could push up retail deposit rates further.
Economists expect that the festival season during the second half of the year would help in keeping the trend robust. The upshot is that tariffs are likely to see upside pressure.
A recession may seem imminent in the US but signs of contraction are yet to show up on the balance sheets of banks there.
Crude oil prices have come off sharply from record highs which is likely to have a favourable effect on inflation.
Six months since the central bank vowed to reduce the liquidity glut, the surplus is reducing slowly.
India’s imports from Russia outstrip exports and the trade deficit with the country has increased over the past two years. As of March, the trade deficit has more than doubled.
Given that companies are willing borrowers and banks are all too happy to lend, the growth rate may continue in the coming quarters.
Flows from NRI deposits have declined in the past year due to a combination of low interest rates, a hit to income from the pandemic and the rupee's relative strength against currencies other than the dollar.
A large pile of external debt is coming up for redemption this year. The interesting part is half of the repayments are of past long-term debt coming at an unfortunate time.
Issuance of certificates of deposits have increased over the past two months, an indication of the rush to garner deposits by banks amid a strong recovery in credit growth and reducing liquidity surplus
Non-bank lenders have not been able to reduce their delinquencies in a big way despite the recovery in the economy once the pandemic began to recede.
Public sector banks have the highest proportion of subprime borrowers, the riskiest of retail category characterized by low credit scores,
Data from the Reserve Bank of India (RBI) shows that about 9.3 percent of MSME loans had turned bad by March 2022. That is lower than the delinquency ratio of 10.8 percent in FY21.
Deposits from finance companies such as mutual funds, pension funds, insurance companies and non-bank lenders has surged in FY22 but their share remains low in overall bank deposits.
The transmission of policy rate cuts during pandemic years missed credit cards completely, with interest rates rising for this category.
There isn't a large overlap between equity outflows and debt inflows when bond yields rise, a deep dive by BoFa Securities suggests