As the dust settles on the euphoria following Nirmala Sitharaman’s growth oriented Budget, it is becoming apparent that much of the proposed reforms in the banking, financial services and insurance sector are fraught with challenges, and could take years to be completed.
“Other than IDBI Bank, we propose to take up the privatisation of two public sector banks (PSB) and one general insurance company in 2021-22. This would require legislative amendments and I propose to introduce them in this session itself,” the finance minister said in her Budget speech on February 1. She also spoke about publicly listing Life Insurance Corporation (LIC) in 2021-22 for which the requisite amendments will be made in this session itself.
What is unclear is whether the government will let go of complete management control in the two PSBs. It could well be that it wants to sell a small stake in those banks and allow private investors into them.
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EARNING HIS STRIPES
Following the success of The White Tiger, newcomer Adarsh Gourav finds himself in haloed territory of global award nominations
Forbes INDIA Leadership Awards 2020-21
In a year when business leaders were forced to overhaul their strategies from growth to survival mode, the Forbes India Leadership Awards honour those who successfully navigated the pandemic by innovating and leading from the front
‘COVID-19 SPED UP EXISTING TRENDS IN THE MARKET'
Jean-Christophe Babin, CEO of the Bvlgari Group, on the impact of the pandemic on the luxury sector
How LTI Came Into Its Own
With Sanjay Jalona at the helm, the IT services company is winning against bigger rivals, stepping out of its larger parent’s shadow, and forging an identity for itself
Valuations of Consumer Companies in Slow Lane
Despite a bright business outlook, FMCG companies have not outperformed the markets
‘If You Don't Understand Technology or Data, You'll Become Obsolete'
Raja Rajamannar, CMO at Mastercard, talks about his book Quantum Marketing, and how marketers can stay relevant in the future
From Noun To Verb: Can Dunzo Do A Zoom?
It has raised close to ₹880 crore in six years, earned ₹27.5 crore and lost ₹338.4 crore. Critics may scoff, but Dunzo’s backers are not complaining, and co-founder Kabeer Biswas is chilled out
Bitcoin Gets A Shot In The Arm
Tesla’s $1.5 billion investment in cryptocurrency will encourage more corporates to gamble with it. Experts say India needs to join before it’s too late
Tech For Health: The Practo Way
With Covid-19 becoming a tipping point for business, the startup that helps people find and consult with doctors is doubling down on expanding and deepening its tech platforms
Can Koo Be King?
Forbes India delves deep into the new bird app and its content moderation policy to find out if the migration from Twitter will stick
THE LONG ROAD TO RECOVERY
TO ACCELERATE THE PROCESS, WHAT IS NEEDED IS AN AGGRESSIVE APPROACH TO VACCINE DELIVERY, A FISCAL STIMULUS, MORE CREDIT AND LARGE-SCALE PRIVATISATION OF PUBLIC SECTOR UNDERTAKINGS
With private sector missing from action, PSUs were expected to play saviour, an expectation they failed to live up to
RESERVE BANK NEWS
Banks to raise Rs 1,50,000 crore in next 18 months
PUBLIC SECTOR BANKS DESERVE RESPECT
"The resources of the financial system are held by financial institutions in trust and have to be deployed for the maximum benefit of their owners' viz., depositors and investors. The safety of their funds should be the primary concern of banks and regulatory authorities and ensuring solvency, health and efficiency of the institutions should, therefore, be central to effective financial reform." -Report of the committee on Financial Reform, 1991 (Narsimham Committee)
Stimulus Package: SME STOCKS READY TO BOUNCE BACK?
For the investor, the best way to judge the impact of the government’s ₹3 lakh crore stimulus package for Micro, Small and Medium Enterprises (MSMEs) is to look at the movement of the stock market and the effect on mutual funds. These industries have a major role to play in not just generating huge employment but also as a major exporter and a supportive ancillary sector for big industry. The new push towards self-reliance and reduction of import dependence under the Atmanirbhar Bharat Abhiyan has given them an entirely new role. If the strategy works, there is no reason why the stock market particularly the small and mid-cap shares, which represent the MSME sector, won’t cross the past levels. But business models and management strategies are bound to see some remarkable transformation in the COVID-hit universe, and this would have a wide-ranging impact on both profitability and investor returns. But there are many challenges that require greater attention than the government’sn liquidity led revival program. Industrial revival requires sharp up gradation in technology, wide-ranging infrastructure development and a strong drive for skill development among workers. These issues remain to be addressed. If handled well, they will do good for the investors and the economy as a whole.
Moody's changes outlook for Indian banking to ‘negative'
Moody’s Investor Service changed the outlook for the Indian banking system to negative as stress on the sector is likely to rise with the coronavirus outbreak and higher defaults.
HOW WE DID IT
The methodology for the BT-KPMG Best Banks Survey 2019
SBI, the largest bank in the country, has created building blocks for capturing the next growth cycle with sharper focus on risk and returns
A CROSS-BORDER SOLUTION TO A DOMESTIC PROBLEM: INDIA'S BANKS AND THE ROAD TO RECOVERING NON-PERFORMING ASSETS
A key issue within the nation’s present financial crisis has been the Indian banks’ hesitation to lend due to the increasingly large volumes of non-performing assets (NPAs) in their balance sheets
MSME Credit Growth Slows Down, Asset Quality Deteriorates: Kotak
The overall credit growth to the micro, small and medium enterprise (MSME) segment slowed further in the second quarter (Q2 FY20) to 5 percent year-on-year (y-o-y), according to a report by Kotak Securities.