Financial Stability Report

NHAI ordered to do stability check of new Kali river bridge post collapse

Authorities in neighbouring Karnataka on Wednesday ordered the National Highways Authority of India (NHAI) to check stability of the new Kali river bridge after an old bridge on the water body collapsed. The old bridge on the river collapsed at around 1.30 am on Wednesday, resulted in heavy traffic on national highway no. 66 connecting Goa to Karnataka, officials said. A truck crossing the bridge at the time fell into the river. Local fishermen later rescued its driver, a police official from Karwar in Uttar Kannada district of Karnataka told PTI. The old bridge which collapsed was used for Goa-bound traffic after the construction of a new one a decade back, the official said. Uttar Kannada District Magistrate Lakshmi Priya K said it has been brought to the notice that the old Kali river bridge connecting Karwar and Sadashivgad collapsed at 1.30 am on Wednesday. She ordered the NHAI officials concerned to verify and report stability of the new Kali river bridge connecting Karwar a

Fresh concerns for systemic stability must be monitored

The RBI is moving to implement changes in guidelines on Liquidity Coverage Ratio with higher runoff rates and haircuts

MSMEs get a helping hand in Budget but challenges in financing remain

According to CRISIL Ratings' bi-annual 'MSME Report' (June 2023), the debt need of the sector is more than Rs 100 trillion. Of this, 70% is for working capital requirements alone

Fintechs' lending biz is growing but industry must mind the warning signals

FY24 sees record loan surge and customer growth

Improving financial stability

Some areas of concern remain

RBI red flags NBFC consumer credit, calls for close monitoring of a few

Says need to monitor NBFCs growing fast clip pace with low capital buffers

RBI's action against regulated entities rises even as amounts fall

According to Financial Stability Report, the enforcement action by the banking regulator increased to 161 entities in December 2023 - May 2024 from 146 entities in June 2023 - November 2023

Cyber risk to stability

Financial regulators need to be vigilant

Let's get real about rates

Given myriad cross currents across inflation, growth and financial stability, monetary policy in 2024 will have to cross the river by feeling the stones

Yield spread between state bonds and g-sec widens to two-year high

The yield spread widened to 53 basis points on Tuesday. The last time the yield spread widened above 50 basis points was in January 2022

Banks to remain well capitalised even under severe stress: RBI report

Bad loans from agri remain high at 7%

Banks' capital adequacy ratio to fall 71 bps on higher risk weight: RBI

Higher risk weight to dampen growth exuberance, improve credit quality

Risk of Oil price spike impacting India in Fy25 is low: CEA Nageswaran

An oil price surge of 10 per cent from the baseline of $85 per barrel could weaken domestic growth by 15 basis points and increase inflation by 30 basis points

Acharya's wish: RBI needs to deliver 4% retail inflation year after year

Reminds analysts, bond markets that inflation target is 4% and not 6%

ESG is sensible; it means doing business the right way: Sankar Chakraborti

'The ESG concept is relatively new compared to conventional risk-management frameworks'

Don't dodge lender if default is imminent; request for loan recast instead

Also explore options such as swapping higher-cost debt with lower-cost alternatives, and debt consolidation

States' financial profile better in FY23; debt stays high: RBI report

At a disaggregated level, a few large states have debt-to GSDP ratios exceeding 35 per cent, the report added

Global financial stability at risk from banking turmoil: IMF chief

Adding to a growing chorus of warnings from economic leaders, the IMF chief said it was clear that risks to financial stability had increased after the recent collapse of Silicon Valley Bank

Explained: How sensitive is the issue of pledge of shares by promoters?

Extant Sebi rules require disclosure of pledge of promoters' equity, but there's nothing that requires disclosure of the effective leverage

Pak EC suspends 271 lawmakers for not submitting financial statements

Pakistan's top election body has suspended the membership of 271 lawmakers across the country for not submitting their statements of assets and liabilities. The statements have to be filed by December 31 every year, and the lawmakers were directed by the Election Commission of Pakistan (ECP) to submit their financial statements up to June 30, 2022, by January 16, 2023. It also warned that failing to submit the financial statements would result in the suspension of their respective memberships. The ECP said on Monday that those targeted include 136 Members of the National Assembly, 21 senators, and 114 Members of Provincial Assemblies.