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External Benchmark

Will the shift to external benchmarking benefit borrowers? During the week, the RBI announced that all banks will shift to pricing their loans based on an external benchmark like the RBI repo rates or the RBI MSF rate so that any rate cuts can be seamlessly passed on. This shift will be effective from October…

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External Benchmark

Will the shift to external benchmarking benefit borrowers? During the week, the RBI announced that all banks will shift to pricing their loans based on an external benchmark like the RBI repo rates or the RBI MSF rate so that any rate cuts can be seamlessly passed on. This shift will be effective from October…

NBFC Repayments

How will the NBFC segment handle Rs.35,000 crore outflow? Come September and the non-banking finance companies (NBFC) have fresh problems to worry about. Even last year the NBFC problems and the liquidity crunch had begun in September after the IL&FS defaults became public. So what exactly is the problem that NBFCs are going to face…

Essel Debt

Zee Group begins debt repayment, but how will it complete? The Essel Group owned by Subhash Chandra has repaid around Rs.4500 crore out of its debt owed to mutual funds for the group infrastructure and power forays. While a start has been made towards repaying the Rs.17,000 crore owed to mutual funds, it is still…

Sugar Subsidy

Generous export subsidy for sugar may only solve half the problem The cabinet last week approved a huge sugar export subsidy of Rs.6286 crore for sugar mills to export sugar. Cost of producing sugar in India is substantially higher than in countries like Brazil and Australia. With global sugar prices falling, the only way for…

NHAI Debt

Is NHAI debt the next big headache for banks and the centre? The worsening debt situation at the National Highways Authority of India (NHAI) was being spoken about in hushed tones for long. But it may not have become apparent if the PMO had not summoned the top brass of NHAI and the ministry and…

Bank Mergers

Bank mergers were long overdue but it also poses challenges With a sweep of her pen the Finance Minister reduced the number of PSU banks in India from 10 to just 4. Large banks like PNB, Canara Bank and Union Bank became the acquiring banks. The merger was long overdue but there are also some…

SEBI Board Meet

SEBI announces slew of market friendly reforms at its board meet In the last couple of years, SEBI board meetings are becoming a key forum for important regulatory decisions. The last SEBI board meeting on 21st August made important shifts in 4 key areas. Simplifying FPI investments That was perhaps the theme of the Board…

STT on Options

Why the new STT rule for Options could make a big difference The modified formula for STT on options will kick in from September 01. The STT is normally levied on both sides of a delivery trade in the market and only on the sell-side of intraday and derivatives trades. Let us look at why…