Business growth has been declining: After three quarters of robust business growth, the fourth quarter of FY2009 witnessed significant cooling in the credit offtake. As per the latest data by RBI, the credit growth as on March 13, 2009 stood at 18.3%, down from the ~24% growth for Q3FY2009 and the ~22% growth in the fourth quarter a year ago. Clearly, the moderation in economic activity and the deterioration in business and consumer sentiment are finally catching up with the demand …

Read complete post >>

HURRAY! INDIA has proved herself once again. After a sweeping win of Indian artists at the Oscars (I am referring to Slumdog Millionaire winning 8 Oscar awards), an Indian bank has now surpassed the till-now global banking major - Citibank - in terms of market capitalization.

According to a report published in The Times of India, Citigroup, with assets worth $1.95 trillion (Rs 9,72,075 crore), now values less than our own the State Bank of India (SBI). On Tuesday morning (at …

Read complete post >>

The condition of India’s macro-economy as well as banking sector remains weak with inflation hovering at 12% levels, the rupee weakening against the dollar, the fiscal deficit widening and persistent fears of an economic slowdown. All this translates into myriad concerns pertaining to the visibility of banks’ earnings growth. Further, the dislocation in global financial space has resulted in either the bankruptcy of the major players (Lehman Brothers Holdings) or voluntary/forcible sell-out of the others (Merrill Lynch, Wachovia, Washington Mutual).

Amidst …

Read complete post >>