VisVoice

  Traditional lending is at cross roads Pre-Reform Era:  When I joined the banking services in 1980, traditional lending was the buzz word. Tandon Committee, Chore Committee recommendations were the accepted norms for lending to corporates/businesses and scale of finance was the method used to finance short term agricultural loans. With the nationalisation of SBI in 1955, seven princely state banks in 1960s and twenty major private banks in 1969 and 1980, (i) short term borrowings to corporates/small and medium industries/small business finance, (ii) vehicle loans for business  purposes (tractors and lorries) and (iii) crop loans and term loans to agricultural  and allied activities were the approved ways of lending adopted by the scheduled commercial banks (SCBs). The long term requirements for implementation of projects and for purchase of capital equipments by the existing players were left to the development financial institutions (DFIs) such as ICICI and IDBI. E...

  Keep the ‘pause’ in policy rate but change the stance, please The Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) meets in Mumbai from 5th June to 7th June 2024, to review the policy (repo) rate and the monetary policy stance.  Policy Rate: While the external factors like forex reserves, rupee remaining in the range, no alarming current account deficit (CAD) are encouraging,  RBI may still keep the policy rate unchanged due to the following domestic factors. 1. CPI Inflation for March and April 2024 came down below 5.0% and were at 4.85% and 4.83% respectively. However, food inflation spiralled in  April 2024. The monsoon is yet to set in aggressively. And the inflation, which came down by just 0.02% in April 2024 as compared to March 2024, is still much higher than the target inflation rate of 4.0% 2. In spite of keeping the policy rate unchanged in 2023-24, the GDP growth at 8.2% for the same period indicate that the economy is not impacted by the...

  Apolitical Aspirations of a Common Bharatiya The time is 3.00 P.M. and the date is 31st May 2024. Three hours from now, the final (seventh in number) phase of Lok Sabha elections for 2024 will come to an end. Exit poll predictions from the media will occupy our pastime tonight and may extend well into the morning and noon of tomorrow. The actual results will be known by the afternoon of 4th June 2024.  What can be a better time than now to air my wish list for the new government that will be sworn in anytime after 4th June 2024.  I term my wish list as 'apolitical aspirations of a common bharatiya (indian)'.  Inequality in income widens: India is the fifth largest economy in the world and is expected to move to position three in the early 2030's. Though it is a happy news, the inequality in income among individuals has widened appreciably. Mental work seemingly get better compensation than work done through physique. The government should spend time on this. Unde...