Debut into 2021 marks an appropriate time to introspect into 2020 that will go down into the global history having caused unprecedented socioeconomic distress. With fears of new strain of coronavirus (Covid19) still looming around, the Indian economy is limping back to activity. Amid such ongoing distress, banking system, like other sectors have struggled to […]Read More
The recent near-collapse of Lakshmi Vilas Banks (LVB) is the clear sign of continuing indifference of banks in implementing corporate governance (CG) practices. It is now gasping for survival with worried depositors. Such successive debacles in financial sector expose the fragile governance even when it functions under the regulatory surveillance. Despite constant regulatory and supervisory […]Read More
Even as most of the major economies of the world have witnessed deep contraction during the quarter ended June’2020, Chinese economy grew by 3.2 % yoy, rebounding from a 6.8 % yoy contraction in the previous quarter. On qoq basis Chinese economy registered 11.5% growth. The contrast is surprising and creates doubt on integrity of […]Read More
The coronavirus pandemic has thrown the microfinance sector off-kilter and made the road to recovery for an already besieged sector longer and harder. COVID-19 has inflicted the greatest pain on those who had already been rendered most vulnerable, spurring great hardship and growing unease among low-income families and micro-businesses. It has uncovered existing inequities and […]Read More
Preventive measures are better than breakdown maintenance; it’s a common phrase being used in heavy machinery maintenance industry. Same applies to banking. Once few major loans default we tend to avoid exposure in the sector. Instead of doing so preventive measures if taken at right time the sudden collapse of the sector or defaults could […]Read More
Microfinance is a much recognized array of financial inclusion. As per data of Equifax, in February 2020, loan accounts, excluding banks & SFBs, stood at 482.35 lakhs however loan accounts, including banks and SFBs, was 1,020.45 lakhs; there were 552.33 lakhs unique clients. Portfolio stood at ₹ 93,799 crores, without banks & SFBs and ₹ […]Read More
The UN’s mid-year report, published in May’2020, forecasts world economy to shrink by 3.20% in the year 2020, the sharpest since the great depression of 1930s. Although new infections and the death rates have recently slowed, the pandemic’s future course remains uncertain, as does the economic and social consequences that will follow. Select Financial Indicators of […]Read More
While Indian Economy was grappling with slow-down, corona virus pandemic superimposed the downward drift. In FY 2019-20 GDP growth stood at 4.2 per cent as against 6.1% in FY 19, the lowest in the last 11 years. GVA growth for 2019-20 is still lower at 3.9%. The otherwise muted growth to some extent was also […]Read More
No matter who we are whether an entrepreneur or a lender we always learn from our experiences. In good times we have funded aggressively based on projections of operators/ hotel brands etc or relied on feasibility studies done by third parties. But if economy is in bad shape, most of the projects we funded are […]Read More
Rejuvenation of MSME segment is an essential requirement for accelerating demand, employment generation and effective utilization of resources. A series of measures taken by the regulator in recent past , for improvement in lending to MSME segment is yet to be reciprocated. The position prompted government to consider extension guarantee for sanction of credit by banks. This […]Read More
