A bond is a financial instrument through which a company or government borrows money from the investors at a fixed rate of interest. Effectively, when you are buying a bond, you are lending money to the Government or the company. To illustrate– a company wants to borrow Rs.100 for 10 years. It can issue …
What are bond yield & the yield curve? – Explained Read More »
Punjab National Bank (PNB), the country’s second-largest public sector bank, disclosed that it has detected fraudulent transactions worth Rs.11400 crores at one of its branches in Mumbai. This is the biggest fraud discovered so far in India’s banking history. The magnitude of the scam is massive considering the amount is equivalent to one-third of the total …
The Non-performing Assets (NPAs) or bad loans of banks have increased to alarming levels. Currently, the NPA ratio in Indian banks stands at 9.45 % of gross loans. The RBI has overhauled its stressed asset resolution framework to ensure speedy resolution of bad loans in the future. What are stressed assets? Stressed assets = Non-performing …
RBI simplifies the stressed asset resolution framework Read More »
When America sneezes, the world catches a cold. Earlier this week, in America, the Dow Jones Industrial Average witnessed two successive one-day falls– one for 666 points and the other for 1175 points. It was the largest one-day fall in its history. In percentage terms, the decline was 4.6 %. It created ripples across global markets. The stock markets in Europe and …
Why the stock markets around the world plunged? – Explained Read More »
The RBI has put 10 Public Sector Banks under Prompt Corrective Action (PCA) since April 2017. Though the PCA framework has been in operation since December 2002, its guidelines were revised in April 2017. The banks that have been put under the RBI scanner are Corporation Bank, Oriental Bank of Commerce, Dena Bank, Central Bank of India, …
What is Prompt Corrective Action (PCA) for banks? Read More »
The Finance Minister Arun Jaitley presented the Union budget on 1st February. It was the last full budget of the Government before the 2019 Lok Sabha elections. With elections approaching, the budget was expected to be populist. The focus of this year’s budget is on agriculture and rural sector. (Read: What is Union Budget of India?) Highlights …
The Government has outlined the details of the electoral bond scheme. The concept of the electoral bond was first mentioned in the budget speech for the year 2017-18 delivered on 1st February 2017 by Finance Minister Arun Jaitley. The scheme was proposed to increase transparency in political funding and cut down the flow of black money …
What is an electoral bond? How will it impact political funding? Read More »