New at APAS blog
A collection of stories about our people, our capabilities, our research, and the ever-changing face of our firm.
Social banking: A global and Indian perspectiveSocial banking, though an integral part of Indian banking system since its establishment, has gained awareness with the significant steps and programs initiated by the Indian government and RBI. Key measures such as Aadhar card, unique identification mechanism, Pradhan Mantri Jan Dhan Yojana and various associated schemes, are helping social banking in India scale new heights.
Indian banking: Let’s prepare for consolidationConsolidation in the Indian Banking sector is being considered as one of the reforms awaiting to be taken by the government and the industry. Here is an attempt to evaluate the impact of banking consolidation on the long-term growth path. One could think that M&A’s are likely to strengthen the soundness and the financial stability of the sector for three reasons.
Digital DataFour decades ago, Ray Tomlinson a computer engineer working in the APRPA net system of the US department of defense a precursor to the current day internet, went onto become the first man to ever send an email and pioneering an era where the invention fundamentally transformed the way human society communicates. It has ushered us into an era combining nearly 3.2 billion people, organizations, economies and even countries to digitally communicate creating a milestone in the information age. The growth of global internet bandwidth and data flow across borders has been a key driver of national economies. Data flows account for $ 2.8 trillion of global GDP and generates more economic value than traditional flow of traded goods.
Consolidation in insurance industryRecent news on proposed HDFC Life – Max merger has triggered the waves of consolidation across the industry. Other players in the industry have become extremely cautious of the giant emerging out of this merger. As the water treads deeper, we take a look at how this consolidation wave could set forth another landmark in the Indian insurance industry.
Differentiated bankingFinancial sector reforms in 1991 rejuvenated Indian economy and contributed greatly to the progress that India has achieved today. Much later in 2014, a set of recommendations which aimed at financial inclusion were set forth by RBI-constituted Nachiket Mor committee. The committee recommended establishing differentiated banks meant for providing banking access to the poor and the unbanked. Hence, the foundation stones for differentiated banking were laid.
Global slowdown: Impact on foreign operations of Indian banksIn the past decade, many Indian firms embarked on expanding their global footprint, taking an opportunity to expand their horizons. The Indian multinational companies expanded across diverse sectors from pharmaceuticals to automotive, textiles and engineering goods. The fundamental reasons behind Indian companies acquiring business including resource mining are to secure natural assets such as mines, oil fields, intellectual properties, etc. and to put up their presence in global markets. This truly described the global aspirations of Indian companies.
Revised GDP calculation method in India and its impactGross domestic production (GDP) represents the health of the economy and is used as an indicator by the Government and policy makers for planning and policy formulation. It represents a single number that indicates the monetary value of all finished goods and services produced within a country.
Stress of NPAs in the banking system: Preventive and Curative MeasuresA robust banking industry is a vital component in the engine of growth and particularly in India as dependency on banking for lending is very high. Indian banking industry is a vibrant space with multiple players, dominated by public sector banks (PSBs), holding nearly 70% of the assets.
Peer to peer lendingPeer to Peer lending or commonly referred to as P2P is a form of crowd funding, which leverages technology to match lenders to borrowers. The roots of P2P lending has been witnessed in pockets around various parts of the world throughout history, but was initially started in a formal setting with the help of technology by company called ‘Zopa’ in UK in 2005.
Fundamentals of monetary policy frameworkIn the global context, slowdown of major economies, weakening of China, plunge in manufacturing activity coupled with a steep fall in commodity prices are everyday news, and the situation is here to stay for quite some time. Amidst this turmoil, India has been the ray of hope with its sustained growth. To capitalize this trend, RBI has maintained that an effective monetary policy is vital to economic performance, among other things.