While the rating agency downgraded India’s sovereign rating, BofA Securities’ economists see the present downturn as cyclical rather than structural; say fiscal stimulus is critical for recovery.
Coronavirus could be a catalyst for resetting the agenda of India’s financial market reforms, says Mark Matthews, head of research-Asia, Julius Baer.
Data reveals that the loss-making and NPA-heavy public sector banks have serious efficiency issues.
If the government moves fast on strategic sale, consolidation among various public sector units, and bringing down its stake to below 51% in CPSEs, it may achieve its disinvestment target.
FM Nirmala Sitharaman will hold similar meetings with representatives from MSMEs, auto, industry associations, financial market stakeholders, and others to address sector-specific issues.
State-owned lenders SBI, BoB, and PNB have all posted profits for the quarter ended June 30. Recoveries have been flat but cutting interest rates on deposits should help increase their margins.
The government’s partial credit guarantee on asset purchases does not address investors’ long-term concerns about the sector’s exposure to stressed real estate: Fitch Ratings.
A detailed look at data reveals that Modi 1.0 had a far superior record on disinvestment compared to UPA 2.0.
Narendra Modi 2.0 will likely focus on challenges to the economy as the spectre of a slowdown looms; India Inc believes the Modi-led NDA is the best bet for the future.
