Using icons and speech, AI-enabled voice apps like Hello Ujjivan and Bhashini are building a new bridge to banking for India’s 18 crore low-literate citizens.
Accoring to Motilal Oswal report, fintech sector, which barely existed before 2015, now holds a combined market cap of over Rs 12 trillion, including both listed & unlisted companies.
Narrowing of the wedge between credit and deposit growth, and the possible easing of the monetary policy, could weigh on the net interest margin of banks in 2025.
Since 2014, the Modi government has been aggressively expanding access to banking services and encouraging participation in the stock market. Simultaneously, it has sought to substantially boost GST revenue.
RBI’s latest financial sector report card highlights drop in NPAs, capital buffers for banks & better asset quality for NBFCs. But new sources of risk, like climate change, have emerged.
To avoid high credit-deposit ratios, banks need to maintain healthy deposit base — a difficult task considering the competition they face from MFs & physical assets like gold, real estate.
There are, however, also some incipient signs of stress in the form of shrinking net interest margins & build-up of bad loans in retail segment that need to be monitored.
Indian banks, regulators, and investors weren’t worried when crises began exploding in US and European banks earlier this year. This resilience has been a long time coming.
While bank credit looks healthy, there are signs of stress. Pvt investments show green shoots but merchandise exports are contracting. Foreign investors continue to find India attractive.
It is crucial for banks and other financial institutions to conduct regular stress tests against known market risks, including inflation and interest rate risks, writes Atul.
China flaunted military might & modernisation as it displayed stealth drones, anti-satellite system & cyber warfare contingent during parade to mark victory over Japan in WWII.
From Munir’s point of view, a few bumps here and there is par for the course. He isn’t going to drive his dumper truck to its doom. He wants to use it as a weapon.
COMMENTS