India's banking sector is a study in contrasts and The Daily Brief of date—“What's going on with banks?”s in-depth research updates us the Crucial Findings that the Indian banking sector is navigating a period of moderating credit growth and increasing scrutiny, particularly on unsecured lending. The insight—So if you’re an investor asking “Can I still bank on banks?” — you may want to sit with that question a little longer. Because this is the kind of quarter that keeps you guessing—is just what we ordinary investors want and The Daily Brief does it again today.I request The Daily Brief to tell more about impact on banks of upcoming including potential easing of foreign ownership rules and new climate risk disclosures .
Reading the note on”Making money, battery-storage style?” offers glimpses of the future, and the likely generation of an impressive 17% IRR feels slightly mad, but also just plausible enough to wonder: what if?
The note is duly supported by an analysis from energy think tank Ember,and,that makes it a Startup /Entrepreneurship idea though this seems beyond MSME reach.I wish The Daily Brief would’ve analysed Indian listed cos operating in this space.
On SCB results - The results highlight another important aspect apart from compressed margins, declining CASA, and rising cost of credit for banks - Conventional wisdom informs us that rate cuts and credit offtake go hand in hand. But the numbers show that the relationship is not straightforward. Lower interest rates is not the only consideration for corporates to consider borrowing. They need to take demand into consideration, which at the moment appears sluggish. This highlights a larger point about the limitations of monetary policy - Monetary policy is just a part of the picture. Unless augmented by fiscal measures, government spending (pump priming), tax rationalisation (especially GST), and other structural reforms, monetary policy alone does not move the needle. Corporate spend typically follows govt spend. It's not the other way.
I don’t think the numbers are too bad. During periods of slow economic activity, banks—especially private ones—tend to lend less. This approach has helped keep their overall GNPA ratio stable in the range of 1–3% for years.
Precisely being our point. Slower lending by both private and public banks points to the fact that economic activity is sluggish lately, which is a sign of caution. That said, we did mention that there is no surprise, but if we look at things in perspective zooming out, situation looks bleaker than it was 1-2 years ago.
India's banking sector is a study in contrasts and The Daily Brief of date—“What's going on with banks?”s in-depth research updates us the Crucial Findings that the Indian banking sector is navigating a period of moderating credit growth and increasing scrutiny, particularly on unsecured lending. The insight—So if you’re an investor asking “Can I still bank on banks?” — you may want to sit with that question a little longer. Because this is the kind of quarter that keeps you guessing—is just what we ordinary investors want and The Daily Brief does it again today.I request The Daily Brief to tell more about impact on banks of upcoming including potential easing of foreign ownership rules and new climate risk disclosures .
Reading the note on”Making money, battery-storage style?” offers glimpses of the future, and the likely generation of an impressive 17% IRR feels slightly mad, but also just plausible enough to wonder: what if?
The note is duly supported by an analysis from energy think tank Ember,and,that makes it a Startup /Entrepreneurship idea though this seems beyond MSME reach.I wish The Daily Brief would’ve analysed Indian listed cos operating in this space.
On SCB results - The results highlight another important aspect apart from compressed margins, declining CASA, and rising cost of credit for banks - Conventional wisdom informs us that rate cuts and credit offtake go hand in hand. But the numbers show that the relationship is not straightforward. Lower interest rates is not the only consideration for corporates to consider borrowing. They need to take demand into consideration, which at the moment appears sluggish. This highlights a larger point about the limitations of monetary policy - Monetary policy is just a part of the picture. Unless augmented by fiscal measures, government spending (pump priming), tax rationalisation (especially GST), and other structural reforms, monetary policy alone does not move the needle. Corporate spend typically follows govt spend. It's not the other way.
I don’t think the numbers are too bad. During periods of slow economic activity, banks—especially private ones—tend to lend less. This approach has helped keep their overall GNPA ratio stable in the range of 1–3% for years.
Precisely being our point. Slower lending by both private and public banks points to the fact that economic activity is sluggish lately, which is a sign of caution. That said, we did mention that there is no surprise, but if we look at things in perspective zooming out, situation looks bleaker than it was 1-2 years ago.