Growth in pre-provision earnings and decline in bad loans will improve profitability of banks in the current fiscal, a report said on Monday. Better profitability will offset increases in capital consumption due to an acceleration in loan growth, helping banks across the system maintain capital at current levels, Moody’s Investors Service said in a report. … Read more
By Rahul Satija A slide in the rupee is exacerbating a slump in Indian corporate dollar notes that are now among the worst performers in Asia, just as concerns mount that companies are hedging less. The securities have lost about 0.1% in April, worse than a 0.4% gain for a broader Asian dollar bond gauge, … Read more
The Reserve Bank of India‘s recent proposal for tighter regulatory framework for non-banking financial companies may strengthen their balance sheets but will not address their funding and liquidity issues, says a report. Last week, RBI released a discussion paper which proposed a scale-based regulatory approach linked to the systemic risk contribution of shadow lenders. In … Read more
New Delhi: US-India trade negotiations will continue to be challenging and are likely to get delayed due to the Covid-19 pandemic, said Moody’s Investors Service. The two sides have been trying to thrash out a trade package with limited scope with the long-term aim of a free trade agreement (FTA) since last year, amid a … Read more