Commodities 30 Nov 2017 by Tojo Jose

Bitcoin gets bigger than Samsung and enters history’s biggest bubble-burst zone

Bitcoin gets bigger than Samsung and enters history’s biggest bubble-burst zone

Transnational currency cum commodity icon – the Bitcoin has registered $10000 per unit on Tuesday. The currency has now an aggregate value of $178 billion which is bigger than the market value of major MNCs including Samsung and IBM. At the end of the trading session, the wonder crypto currency has shed $1000 to reach at $10000 from its highest value of $11000 at the Coin Desk Bitcoin Price Index (BPI). The crypto currency was getting stronger and stronger since January this year; surging from nearly $900 to $10000 in nine months. Rising investors interest and increased use by global tech world has boomed interest in the digital currency. There are several hope and war

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Banking 16 Nov 2017 by Tojo Jose

Banks to sign MoUs with government for recapitalisation

Banks to sign MoUs with government for recapitalisation

The Finance Ministry is firm on banks signing MoUs involving the government, banks management and employee unions for the ailing banks to avail the recapitalisation programme announced last month. Earlier this year in March, the government recapitalised 10 PSBs based on the MoUs signed between the relevant parties. This procedure is quite mandatory, and the terms and conditions are also prepared by the Ministry. In the March MoU, government, bank boards and employee organisations of 10 PSBs agreed for Rs8,586 crore recapitalization. The terms of conditions of the MoU include strict asset management procedures and other commitments form the part of the capital availing banks.

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Banking 30 Oct 2017 by Tojo Jose

Finance Minister to lead the Ministerial Panel on PSB merger

Finance Minister to lead the Ministerial Panel on PSB merger

In the background of the Rs 2.11 trillion recapitalisation and the merger of state banks under the SBI, the government is proceeding with the next policy step on PSBs – consolidation. Finance Minister Arun Jaitely is going to head a Ministerial committee to oversee the merger of the 21 Public Sector Banks. At present, the category of PSBs comprises of 21 banks. SBI is the leader with the nationalised banks and IDBI completing the rest. According to the PTI report, besides Jaitely, members of the Committee include Railway and coal Minister Piyush Goyal, and Defence Minister Nirmala Sitharaman. In August this year, the Union Cabinet decided to go for alternative mechanism f

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Banking 23 Jun 2017 by Tojo Jose

RBI warns banks to address big NPAs or to face action on insolvency procedures

RBI warns banks to address big NPAs or to face action on insolvency procedures

The Reserve Bank of India has warned banks to address big NPAs or face procedures under the new Insolvency and Bankruptcy Code on these accounts. In a communique to banks, the RBI urged settlement of 55 high value NPA accounts within six months. Earlier, the RBI’s Internal Advisory Committee (IAC) has identified 12 big NPA accounts that need immediate action. These NPAs accounts for nearly 25% of total NPAs of the banking system. The warning by the RBI comes after the government gave it the power to direct lenders to initiate the insolvency and resolution process in the event of default. According to experts, the RBI got power to initiate actions on NPA front as per the new

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Capital Markets 30 May 2017 by Tojo

SEBI plans more restrictions on Participatory Notes

SEBI plans more restrictions on Participatory Notes

The capital market regulator SEBI is planning new regulations to curb the misuse of Participatory Notes. According to a consultation paper, the regulator would like to end the use of PNs for non-hedging purposes by 2020. Participatory notes are popular instruments for non-resident Indians to bring back money stored in overseas to make investment in Indian shares and bonds. They are offshore derivative instruments enabling foreign investors who have not registered with SEBI to invest in Indian shares to trade in shares through Indian brokers. Government’s White Paper on black money and the Special Investigation Team on black money have identified PN as a way to bring back bl

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Commodities 22 Apr 2017 by Tojo Jose

Oil sinks below $50 as market discovers Shales’ new resistance against OPEC

Oil sinks below $50 as market discovers Shales’ new resistance against OPEC

Crude oil market witnessed prices falling to two week’s low in the background of renewed production deployment by the rookie shale producers. The US benchmark WTI fell to $49.39 and the global version -Brent lost $1.24 to $51.75. Market observers say the new down trend is not due to demand and supply reasons. Rather, reports of more rig deployment by Shale producers sent shock waves across market. Though the development is not going to bring market further down, analysts say that it will strengthen the threshold resistance by Shale against the colluding OPEC. Shale producer’s willingness and capability to strike the consortium of countries with higher output is an ind

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Banking 03 Apr 2017 by Tojo Jose

SBI grows big, but should change more internally

SBI grows big, but should change more internally

The merger of five state bank associates with the SBI has made the latter as the only state bank. A passionate nationalist may read the development as India is going to have one of the top 50 banks in the world. Big and now grow sophistticated The merger’s impact on the SBI’s status as a global entity will be just arithmetic and may not be quality wise. To be a global bank, the asset size and national networks are not enough. Rather, sophisticated corporate financial intermediation, products and services are essential. None of the Indian banks have even a good merchant banking division. When the ONGC made its IPO in early 2004, most of its merchant bankers who promo

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Banking 22 Feb 2017 by Tojo Jose

BHIM app gets record 17 mn installations

BHIM app gets record 17 mn installations

The ace digital payment app- Bharat Interface for Money has seen a record 17 million installations so far according to NITI Ayog. This is a world record as it was launched just at the end of December last year. The NITI Ayog’s CEO- Amitabh Kant described that what matters is to keep the momentum for the BHIM drive. The BHIM App as a digital payment interface is getting increasingly accepted among people especially in the context of the demonetisation driven digital payment campaign according to the NITI CEO. One updation in the form a new payment option ‘Pay to Aaadhar was made since its launch. Now the app is available in seven vernacular languages besides Hindi and

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Commodities 10 Jan 2017 by Tojo Jose

Crude registers price fall as US shale starts responding to OPEC production cut

Crude registers price fall as US shale starts responding to OPEC production cut

Crude has ended its ten-week consecutive rise to stop and fell to $ 54.3 (Brent) from the previous week high of $58. This was amidst prospects of robust supply by the US Shale and Iraqi producers. The new price trend of crude shows limitations of OPEC’s production cut. The oil cartel agreed for a production cut for the first time in nearly eight years in last month. On November 30 last year, the cartel decided to trim output to 32.5 mn barrels a day, supported by Russia. Markets were keenly observing the success of the OPEC policy in a world market where several producers were outside the cartel besides the rookie shale going ultra-market oriented. “Concerns about th

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Banking 03 Jan 2017 by Tojo Jose

Paytm gets approval for payment bank license -to make a face to face with Paypal

Paytm gets approval for payment bank license -to make a face to face with Paypal

Financial sector disruptor, Vijay Shekhar Sharma’s Paytm has got the approval to launch its payment bank business. The digital payment leader is expected to start payment bank operations by next month. “Today, RBI gave permission to formally launch Paytim Payments Bank. We cant wait to bring it in front of you” Vijay Shekhar Sharma remarked in blog. Payment bank operation will enable the company to launch the high graded open system payment instruments or the multipurpose cards. Payment bank license allows the holder to accept deposits without extending credit. The business is especially good for digital transaction firms as it will help them to deal with public

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