Daily Market

Introduction In a recent announcement on December 8, 2023, the Reserve Bank of India (RBI) maintained its stance on the Consumer Price Index (CPI) inflation forecast, offering a glimpse into the economic trajectory for the upcoming financial years. Governor Shaktikanta Das, while acknowledging progress in lowering inflation, emphasized the need for continued active disinflationary measures to achieve the coveted 4 percent target. This article delves into the key highlights of the Monetary Policy Committee (MPC) meeting, shedding light on the inflation outlook, policy decisions, and the potential impact on the Indian economy. Headline Retail Inflation Trends Despite a temporary easing to 4.87 percent in October, economists project a sharp rise in headline retail inflation to nearly 6 percent in November, with data set to be unveiled on December 12. Governor Das highlighted the persistent volatility in headline inflation due to frequent and intense supply side shocks. The trajectory of f...

Introduction In the financial landscape of the fiscal year 2022-23 (FY23), a significant revelation has emerged, shedding light on the intricacies of bank loan write-offs. The Ministry of Finance, in a recent presentation to the Parliament, disclosed compelling data indicating that over 52.3% of the substantial Rs 2.09 lakh crore worth of loans written off by Scheduled Commercial Banks in FY23 were attributed to large industries and the services sector. Unraveling the Numbers FY23 Loan Write-Off Overview In response to queries posed in the Lok Sabha, Minister of State for Finance, Bhagwat Karad, articulated that the total written-off loans amounted to Rs 2.09 lakh crore. This staggering figure underscores the magnitude of financial maneuvers undertaken by banks during this fiscal year. What stands out prominently is the dominance of large industries and the services sector, claiming over half of these written-off loans. Comparative Analysis A comparative analysis with the preceding fis...