3-Point Analysis | These companies may gain as global supply chain gets reconfigured Big Story | Decoding the importance of CSR for corporates Ideas For Profit | Is elevated rural exposure Dabur's Achilles heel? … [Read more...] about Ideas For Profit | Will HDFC’s resilient performance hold out amidst COVID-19 uncertainty?
Sen, quoting Immanuel Kant, argues that the key ethical issue is the relationship between duties and consequences. It is always tempting to see finance in its "immediate appeal" and value short-term gains over long-term stability. The usual thinking is that duty and consequences are independent, but they are not and one has to eventually pay for any duty not conducted ethically. He picks a case of insider-trading where the usual thinking is that it impacts only traders. However, it clearly has much wider ramifications on the confidence in the financial markets once the case is revealed to so-called outsiders. Even those who choose to run banks only for shareholders profit maximisation have a fiduciary responsibility towards depositors. … [Read more...] about Opinion | The role of culture and values in financial crises
The bank raised Rs 745 crore through issue of Basel-III compliant tier-2 bonds in the March quarter. The amount mobilised would be counted as part of tier-2 capital and enhance the capital adequacy of the bank, it said. … [Read more...] about IDBI Bank posts Rs 135 crore profit in Q4
High risk aversion in the banking system is one of the most pressing challenges of current time. Banks have been parking huge surplus liquidity with the RBI, even at very low reverse repo rate. Their reluctance to lend is understandable - economic outlook is weak and lot of their fresh advances could turn bad if economy takes longer to recover. Hence, addressing their risk aversion is a very important step in de-clogging credit flow. Recent announcements of government-guaranteed loans in the second stimulus package could solve the problem to some extent as banks will not retain any risk on their books. … [Read more...] about ‘Need more stimulus with focus on GST cut, wage support, higher MNREGA spend’
In Q4, manufacturing contracted by 1.4 percent as against 0.8 percent contraction in the preceding quarter while construction contracted at 2.2 percent against zero growth in Q3. The positives were agriculture, mining and electricity which grew by 5.9 percent (3.6 percent growth in Q3), 5.2 percent (2.2 percent in Q3) and 4.5 percent (a contraction of 0.7 percent in Q3) respectively. These are the segments that helped the Q3 numbers look better. The forecasts for the quarter were ranging in between 1.2 percent to 3.6 percent. … [Read more...] about Decoding GDP data: India’s economy suffered a double whammy last fiscal and the worst is yet to come