Large NBFCs

Large NBFCs must be subjected to regulation; exactly like banks RBI Deputy Governor Rajeshwar Rao was in the news recently for suggesting in a speech that large NBFCs should be regulated in the same way as banks. In fact, Rao went a step ahead to suggest that NBFCs above certain threshold AUM should either convert…

Personal bankruptcy

The RCOM-SBI case could be an acid test for the new rules In December 2019, the government brought personal bankruptcy under the ambit of NCLT. That meant; in the event of business bankruptcy, the NCLT can initiate personal bankruptcy against the promoter, if they have guaranteed a loan. The first test case appeared in the…

ICICI Bank

A lot of questions are still left unanswered… Source: Moneycontrol If one really wants to understand what has gone wrong with ICICI Bank, one needs to look at the price performance. As the chart indicates, ICICI has not only underperformed its peer, HDFC Bank, but even the Bank Nifty by a huge margin. The problem…

Flipkart Sells Out

Raises bigger questions about Indian home-grown businesses… In one of the biggest ecommerce deals, Wal-Mart bought a 77% stake in Flipkart for a consideration of $16 billion. This gave Flipkart an enterprise valuation of $21 billion. For quite some time, Flipkart was looking for an honorable exit after it became clear that it would find…

Current Account

The CAD is a lot more worrisome than the trade deficit… During the week the trade data was announced wherein the trade deficit came in sharply lower at $12 billion. This is in comparison to $16 billion reported in the month of January. Even the growth in exports of goods was sharper than the previous…