India

Redesigning the Indian monetary policy framework

The classical central banker’s dilemma is how to address the growth versus inflation conflict. The prevailing orthodoxy has remained an independent monetary policy using base interest rates as the primary management tool.

Redesigning the Indian monetary policy framework

The classical central banker’s dilemma is how to address the growth versus inflation conflict. The prevailing orthodoxy has remained an independent monetary policy using base interest rates as the primary management tool.

Pressures on India's public banks to remain despite the USD3.4bn capital injection

Indian banks will need USD90bn in total additional capital to meet Basel III requirements.

Indian banks plagued with significant amounts of NPLs

Gross NPL ratio increased sharply to 7.6% in March.

Indian banks' liquidity to move from negative to neutral

It will progressively release INR750-800b in the system.

Will consolidation in the Indian banking sector be a boon or a bane?

The long-term benefits far outweigh short-term challenges.

Will Indian banks crack the code of its capital conundrum?

They’re struggling to produce quality loans.

More than 50% of the population across emerging Asia still unbanked

But financial inclusion in emerging Asia has visibly progressed since 2011.

Indian non-banking financial companies' NPLs to soar by up to 100bps

But asset quality will stabilize over the next 12 months.