Govt’s cash balances halve in a month with rise in infra spending

The government’s cash balances have nearly halved in about a month to Rs 2.3 lakh crore as it accelerates spending on infrastructure. Higher federal spending, though potentially inflationary, should boost economic growth that fell below even the central bank’s forecast last quarter. Cash balances with the government were at Rs 2.3 lakh crore on September … Read more

Banks say NPAs may rise in MSME sector in next 6 months

The pressure on asset quality of loans to micro small and medium enterprises (MSMEs) is set to increase, leading to a rise in non-performing assets (NPAs) in this segment in the next six months, according to a survey by the Federation of Indian Chambers of Commerce & Industry and the Indian Banks’ Association. Some of … Read more

GST monthly mop-up 2nd highest in July at ₹1.49L crore

GST collections rose 28% to Rs 1. 49 lakh crore in July, making it the second highest monthly collection since the new tax regime kicked in a little over five years ago. The July numbers, which represent transactions in June, were bolstered by buoyant imports with revenues from that segment increasing 48%, compared to a … Read more

Moody’s Outlook On Indian Banks Remains Stable As Recovering Economy Paints A Positive Picture Ahead

Expecting the banking sector’s financial fundamentals to improve ahead, Moody’s in its research note said, declines in loan-loss provisions and increases in net interest margins will boost banks’ profitability. Capitalization, funding, and liquidity will be stable and support loan growth. In Moody’s opinion, banks operating environment will be stable as the economy gradually recovers from … Read more

RBI trims FY23 growth forecast to 7.2% amid geopolitical uncertainties

The Reserve Bank on Friday slashed economic growth projection to 7.2 per cent for the current fiscal from 7.8 per cent estimated earlier amid volatile crude oil prices and supply chain disruptions due to the ongoing Russia-Ukraine war. However, the central bank asserted that it will use all available tools to defend the Indian economy. … Read more

FII stock ownership plunges to 19.9%, value down to $582 bn

Cumulative FPI outflows touched record $14.6 bn, of which March alone saw them taking out $5.4 bn After the record $23 billion of additional investments in domestic equities in FY21, foreign funds have massively slashed their fresh exposure to the country to $3.7 billion in FY22, also pairing down their holdings in the NSE 500 … Read more

Unfolding global developments poses risks to Indian economy, says RBI

India’s macroeconomic fundamentals remain strong but the unfolding global developments pose downside risks in terms of spillover, the Reserve Bank of India (RBI) said in its monthly bulletin on Thursday. “The ongoing geopolitical crisis has heightened the uncertainty clouding the global macroeconomic and financial landscape even as the world economy struggles to recover from the … Read more