George Mathew

Articles By George Mathew

For faster transmission of cuts, RBI plans to formalise linking of new loans to repo rate

On May 1, State Bank of India first linked its interest rates on savings bank deposits and short term loans to the repo rate.

India Inc’s Q1 profit takes a hit amid high interest costs, demand slowdown

Interest costs soared by 22.16 per cent to Rs 65,485 crore during the first quarter ended June 2019 even as demand slowdown started hitting India Inc.

GIC Re increases single property cover to Rs 3,500 crore

GIC Re has used its new capacity to provide renewal cover to India’s largest private sector corporate account — Reliance Industries’ refinery and petrochemical plants at Jamnagar and Hazira in Gujarat, during 2018-19.

Demand slowdown: Now, M&M and Tata Motors to rejig production

 While Mahindra & Mahindra Ltd on Friday said it will be suspending automobile production for 8-14 days in the ongoing quarter in various plants to align production with demand, Tata Motors said that it is going for adjustments in production and block closure in line with the slowdown in demand.

RBI cuts rate by 35 basis points, cites concerns over growth

This is the fourth consecutive cut this year, bringing down the repo rate — the rate at which the RBI lends funds to banks — by a total of 110 basis points from 6.50 per cent.

Amid slipping growth and low inflation, markets factor in another policy rate cut

Foreign portfolio investors (FPIs), worried over the ‘super rich tax’, pulled out Rs 12,419 crore in July and another Rs 2,633 crore in August so far.

CCD owner VG Siddhartha dead: 1,700 outlets, but pressure from PEs and huge debts

Not only do these issues find mention in Siddhartha’s note to the board of directors of Coffee Day Enterprises Ltd and his employees, the publicly-listed company’s latest annual report also bears testimony to its rising liabilities.

IRDAI to give green signal to sandbox experiment soon

Regulatory sandbox is an infrastructure that helps fintech players live test their products or solutions, before getting the necessary regulatory approvals for a mass launch, saving start-ups time and cost.

LIC listing back on agenda, as govt looks to give disinvestment a boost

If the LIC shares are listed on stock exchanges, it could easily emerge as the country’s top listed company in terms of market valuation, overtaking current leaders Reliance Industries Ltd and Tata Consultancy Services.

Rise in government borrowings might have triggered NBFC crisis, says Viral Acharya

Acharya, who demitted the RBI post on July 23, six months ahead of the end of his three-year tenure, said the ability and willingness of NBFCs to borrow long-term comes down when government borrowing increases.

Individual lending growth doubles in four years since March 2015

Total individual lending has registered a 22.0 per cent compounded annual growth rate (CAGR) in the past four years. “Total outstanding balance has increased from Rs 23.7 lakh crore in March 2015 to Rs 52.6 lakh crore in March 2019.

IRDAI asks insurers to pay up in suicide cases within 12 months

Earlier, there were no regulatory provisions for any refund to a policy holder, during the first year of policy issuance, in case a person commits suicide and life insurers can legitimately deny any payment of claims to the beneficiaries of such a life insurance policyholder during this period.

Benchmark 10-year bonds: Yields fall to over 2-year low on rate cut hopes, likely overseas $ bond issue

The yield has fallen by around 100 basis points in the current financial year so far even as inflation remained benign and liquidity position improved.

Merger of three PSU general insurance companies to get ‘serious push’ this fiscal

Budget 2019-20 – announced by incumbent Finance Minister Nirmala Sitharaman – has proposed the enabling provision for the merger of non-life insurance companies by seeking to amend the General Insurance Business Nationalisation Act.

Raising of FDI in insurance broking to 100% upsets domestic brokers

The segments in the insurance industry that will benefit from the new move are: insurance surveyors and loss assessors, third party administrators (TPA), web aggregators and corporate agents.

`70,000 crore will unleash a growth capital ten times … of new bank borrowing’

Mrutyunjay Mahapatra, MD and CEO of Syndicate Bank, says that banks’ lendable resources will be augmented by Rs 7 lakh crore following the recapitalisation measure announced in the Budget.

Govt proposes 100% FDI in insurance broking, further opening up soon

NPS to be separated from pension regulator PFRDA

Union budget 2019: Hike in gold duty riles jewellery traders

Analysts, industry term decision disappointing: may boost illicit gold imports and distort gold markets

Union Budget 2019: More steps to deepen bond market; yields fall, rupee rises

The rupee rose and bond yields declined after the government announced plans for more foreign participation in the bond market and a lower fiscal deficit of 3.3 per cent.

Proposal to raise public shareholding: 1,174 listed firms may have to sell stock

These companies may have to offload shares worth `3,87,000 crore — at current market prices — to reduce promoter shareholding.