A good and informative article shared from my friend Shri Arvind Mannur’s post:MAJOR POLICIES THAT AFFECT BANKS:All the major policy matters decide the destiny of banks. Look at the following:1. MONETARY POLICY decides the volume of business growth, interest rates on deposits & lending, and all other prudential regulations.2. FISCAL POLICY decides the tax matters…
The Lower House of Parliament i.e. Lok Sabha has today passed Four(4) Supplementary Bills of the GST which will pave the path for smooth roll out of GST from 1st July 2017. Since this Bill has been passed as Money Bill passage of it from the Upper House i.e. Rajya Sabha will not be an…
Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances RBI has been decided to provide an additional 60 days beyond what is applicable for the concerned regulated entity(RE) for recognition of a loan account as substandard
Summary of the important announcement regarding Banning of 500 & 1000 Rupee Note : 1. Black money issue, 500 rupees and 1000 rupees banned from Midnight. 2. ATM’s wouldn’t wouldn’t work on 9th and 10th November. Rather the withdrawal limit is Rs. 2000 only. 3. All Residents have option till 30th December 2016, to deposit…
Fundamental of Financial planning. 1. 30 % of your income must be used for monthly living expenses. 2. 30% of your income must be used for Liabilities repayments 3. 30% of your income must be SAVED for your future LIVING. 4. 10% of your income must be spared for entertainments, vacations……….. 5. 6 moth monthly…
SIGNIFICANT PARAMATERS TO SHOW HOW STRONG A BANK IS SIGNIFICANT PARAMATERS TO SHOW HOW STRONG A BANK IS Net Interest Income There is no such thing as turnover or sales for banks. Instead, net interest margin is an indicator of bank’s performance; it is the difference between the income earned on lending and interest spent…
Talking of NPAs or toxic assets in the context of Indian banks , this should be an interesting read…………The total amount of bad loans in India’s banks is bigger than the GDP of 112 countries.India’s burden of bad loans is truly gigantic.An analyst from India Ratings and Research, a credit ratings agency and a unit…
The main reasons for increase in NPAs of banks include sluggishness in domestic growth during the recent past, slowdown in recovery in the global economy and continuing uncertainty in the global markets leading to lower exports of various products like textile, engineering goods, leather, gems.Besides external factors, Finance Ministry’s annual report said, ban in mining…
Much of the economy depends on oil. This is why prices of oil matter to almost every economy. Global crude oil prices are down nearly by 60% this year to $40 per barrel-levels from $110 / barrel at the start of the year. This has caused a crisis in countries like Russia, which depends on…
Reserve Bank of India softened the rules for Liquidity Measurement and Risk Management making the Banks feel comfortable on Liquidity Measurement aspect.