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Here you will find all the research and views that we post on Equitymaster. Use the tools to customize the results to suit your preference!


Bernanke proposes, Rajan dismisses!

Sep 20, 2013

Equitymaster shares its views on the rate hike by RBI governor Dr Rajan in his maiden monetary policy.

What will new banks mean for the banking sector?

Jun 13, 2013

Equitymaster discusses the impact of new of new bank licenses on Indian banking sector

Monetary policy: Liquidity without rate cut

Oct 30, 2012

Equitymaster's discusses whether the RBI's latest cut in GDP growth rate (CRR) will have any meaningful impact on GDP growth rate.

The way forward for 'plastic money'...

Dec 5, 2011

Equitymaster discusses how India's retail revolution cannot succeed without a move to plastic

Key banking ratios-II: PSUs vs private

Mar 18, 2010

In this article, Equitymaster compares some of the key ratios of leading public and private sector banks in India, and how the same have changed over the past five years.

Don't bank too much on these stocks

Oct 15, 2009

Equitymaster discusses the investment opportunity in Indian financial sector

Banks: Saved from the blushes?

Dec 7, 2007

While banking behemoths in the developed economies have faced a lot of flak after the subprime malady, their Indian counterparts have, so far at least, escaped from the blushes.

Banks: What's fuelling growth?

Sep 28, 2007

The fortunes of Indian banks have improved considerably over the past year and the same has been adequately visible in the underlying valuations of the stocks from the sector that have led the market rally, particularly in the past six months.

Banks: The subsidiary conundrum

Aug 31, 2007

The evolution of the banking sector in India has finally reached the stage of getting aligned to its peers in the developed world. And why not! If the regulator's (RBI's) roadmap of allowing foreign players into the sector by FY09 deserves some degree of seriousness, this seems imperative.

Banks: Impact of equity issuances

Aug 24, 2007

It has been pouring in this fiscal and will continue for some time! We are referring to the downpour of issuances in the equity markets. Besides the flurry of IPOs in the primary issuances, markets will be witness to secondary issuances including ADRs, GDRs and QIPs (qualified institutional placements).

Banking: Basel II calling…

May 4, 2007

With a view to adopting the Basel Committee framework on capital adequacy (which takes into account the elements of credit risk in various types of assets) and also to strengthen the capital base of banks, the RBI decided to introduce a risk weighted asset ratio system for banks in India as a capital adequacy measure in April 1992. Essentially, under the above system, the balance sheet and off-balance sheet exposures are assigned prescribed risk weights and banks have to maintain unimpaired mini

Banking: Treasury misnomers...

Apr 27, 2007

A spurt in interest rates over the past year raised concerns over Indian banks' balance sheets. These banks took a substantial hit on their investment portfolios on account of the marked-to-market (MTM) provisioning of investments in the available-for-sale (AFS) category. Most banks transferred long-dated G-Secs to the held-to-maturity (HTM) category by taking big one-time provisioning hits over the last two years. This helped to insulate their income statements to an extent.

Banks: Of reforms and more...

Apr 20, 2007

Financial sector reforms in India introduced as a part of the structural adjustment in the early 1990s have had a profound impact on the functioning of the financial institutions, especially banks. The principal objective of financial sector reforms was to improve the allocative efficiency of resources, ensure financial stability and maintain confidence in the financial system by enhancing its soundness and efficiency. At the same time, reforms were also undertaken in various segments of financi

Banks: Retard after the rally

Dec 28, 2006

One fact that can be underscored for the banking sector in the year 2006 is that – it was a year of sheer excesses! While financial inclusion and evolution of advanced monetary infrastructure is the hallmark of any developing economy, in India, the same has been conspicuously evident over the last two years. To put things in perspective, while the credit to GDP ratio grew by 23% point to point between FY04 and FY06, the per capital credit in the economy (Rs 13,614 in FY06) also grew by 7% in tha

Housing finance: Boom or bust?

Nov 3, 2006

The rapid growth of the mortgage industry in India in the recent years has raised concerns about its sustainability and implications on the country's financial and macroeconomic stability. The IMF, in its World Economic Outlook, 2003 indicated that output losses after real estate crashes in developed countries have, on an average, been twice as large as those after stock market crashes, usually resulting in lasting recessions.

Banks: And the tussle continues...

Jul 13, 2006

As the June quarter results of the banking sector start trickling in from today (starting with UTI Bank), investors are eagerly awaiting numbers that will reassure them of sustenance in credit growth and persistence of the capex cycle in the economy. While concerns over liquidity and margin pressure loom large, apprehension over capital constraints (with the onset of Basel II) and ability to counter foreign counterparts also seem to be weighing heavy on investor sentiment.

Banks: After an eventful FY06...

May 26, 2006

Better economic growth, relatively lower interest rates, capacity expansion by corporates, retail credit penetration and technological upgradation are factors that have facilitated the banking sector's 'dream run' so far. In the initial years of this decade, with the spiraling bond prices, banks could afford 'lazy banking'. Later on (2004 onwards), the highest credit growth in two decades, net interest margins and asset quality comparable to global standards and extended reach, more than made up

Banking sector: Growth converging with prices?

Mar 10, 2006

India embarked on the trajectory of economic reforms in the wake of a serious balance of payment (BoP) crisis in 1991, with banks being the mainstay of financial intermediation. The objective of the banking sector reforms was to promote a diversified, efficient and competitive financial system with the ultimate objective of institutional strengthening. As the banking system became liberalised and financial markets developed concurrently, the conduct of monetary policy was also tailored taking in

Banks: The inevitable 'Tier-III'

Feb 3, 2006

The stalwarts of the North Block are nowadays oft heard reiterating their confidence in the Indian economy and their faith in the economy's potential to achieve 8% GDP growth targets. Understandably therefore, the banking and financial sectors remain one of their priorities when it comes to regulatory licensing and policy framework. In one such development, the central bank recently resolved one of the sector's biggest concerns about capital shortage.

Banks: Banking on 'deliverables'!

Dec 27, 2005

In 1950, the old Imperial Bank of India was ten times bigger than the Hong Kong & Shanghai Bank (HSBC). Since then, the Imperial Bank has morphed into the State Bank of India (SBI), our domestic banking behemoth. It towers over its competition here. Yet, SBI is today a mere tenth of the modern HSBC's size. This nugget tells us a lot about how Indian banks - just like their peers in manufacturing - have lost out in the quest for global scale.

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